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Azeris, Dutch, Koreans, Saudis Invest in the IFC African, Latin American, and Caribbean Fund

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According to the IFC Press Release, “Investors from Azerbaijan, the Netherlands, Saudi Arabia, and South Korea have joined IFC in committing to a fund to make equity investments in companies in Africa, Latin America, and the Caribbean, providing a new way to finance growth and jobs in the developing world.

IFC has committed up to $200 million as a limited partner in the IFC African, Latin American, and Caribbean Fund, L.P. Other anchor investors in the fund, with total commitments of up to $600 million, are PGGM, the Dutch pension fund manager; Korea Investment Corporation; State Oil Fund of the Republic of Azerbaijan; and a fund investor from Saudi Arabia.

The fund provides an opportunity for sovereign and pension fund investors to co-invest for the first time with IFC in growth equity investments in developing countries. The fund is part of IFC’s broader strategy to increase its commitment to Africa, Latin America, and the Caribbean and to mobilize third-party capital where it is needed most.

“Pension and sovereign funds represent a significant savings pool that is seeking commercial returns and portfolio diversification,’’ said World Bank Group President Robert B. Zoellick, who in 2008 called for sovereign wealth funds to invest in equity in sub-Saharan Africa as a way of tapping long-term global savings to boost investment opportunities and development. “`With this fund, we will demonstrate that developing countries have high-quality investment opportunities to attract commercial investors. The private sector will be crucial to a sustained recovery from the global economic crisis and for future growth.”

Lars Thunell, IFC CEO and Executive Vice President, added, “This fund is part of IFC’s strategy to address the increasing number of investment opportunities in frontier markets. With the launch of this fund we are providing equity co-investment opportunities to sovereign and pension fund investors for the first time. We are proud to work with these institutions, which share our vision of sustainable investment opportunities in these markets.”

Fons Lute, the Managing Director Alternative Strategies at PGGM, said: “We are very pleased about this new partnership with IFC, which will give us greater access to frontier markets where we see a lot of potential for growth over the long term,”

The fund will be managed by IFC Asset Management Company, LLC (“AMC”), a wholly owned subsidiary of IFC. This is AMC’s second fund under management, joining the $3 billion IFC Capitalization Fund, which invests in systemically important banks in emerging markets.

Private sector development remains the most effective way for developing nations to grow, create jobs and provide people with the opportunity to escape poverty. The establishment of the IFC African, Latin American, and Caribbean Fund comes as net private capital flows to emerging markets have declined significantly since their peak in 2007. From the perspective of investors, investments in emerging markets, especially frontier markets, represent an asset class that can bring diversification and long-term capital-growth opportunities.

IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Through its investments — including in this first-of-its-kind IFC African, Latin American, and Caribbean Fund — IFC creates opportunities for the poor in developing countries.”

read more: IFC Press Release

White House Nominates Heath Tarbert for CFTC Chairman

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The White House announced Heath P. Tarbert will be nominated to serve as Commissioner and Chairman of the Commodity Futures Trading Commission (CFTC). Tarbert currently serves as Assistant Secretary for International Markets at the U.S. Treasury Department. Before joining the U.S. Treasury, Tarbert was a Partner at law firm Allen & Overy. Tarbert was confirmed by the U.S. Senate for his current Treasury post at 87 (yes) to 8 (no).

Upon Senate confirmation, Tarbert’s CFTC term would start on April 14, 2019 and last for five years. Tarbert is taking over from J. Christopher Giancarlo whose term ends in April 2019. Tarbert will need a U.S. Senate confirmation to take the head CFTC post.

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KIA Could Sell Stake in North Sea Energy Business

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The Kuwait Investment Authority (KIA), through its unit Wren House Investment Management, is nearing a deal to sell a 40% stake in its North Sea energy business to JPMorgan Asset Management. In July 2018, KIA closed on a deal to acquire oil and gas pipeline firm North Sea Midstream Partners from ArcLight Capital.

More details to follow –

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Pensioenfonds PGB Hires BMO Global for Equity Protection Strategy

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Pensioenfonds PGB is a Dutch multi-sector pension fund. PGB awarded a mandate to implement a protection strategy for its €12 billion equity portfolio to BMO Global Asset Management. PGB is a €26.5 billion fund. PGB has been using BMO Global’s responsible engagement overlay since 2017.

The Chief Investment Officer of PGB is Harold Clijsen.

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