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China’s ASEAN Investment Fund Seeks to Raise $3 Billion

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The China-ASEAN Investment Cooperation Fund (CAF) – a dollar-denominated private equity fund formed under direction of China’s State Council in 2010 that targets investments in infrastructure, energy, and natural resources in Southeast Asia – has reportedly begun reaching out to prospective investors for phase two funding.

With the US$ 1 billion it received in starting capital during the first phase wrapped up in companies in Cambodia, Laos, Myanmar, the Philippines, and Thailand; the CAF now aims to raise up to US$ 3 billion in additional funds, and US$ 10 billion over the long haul.

Southeast Asia Investment Strategy

The fund will need every dollar it can get if it’s to support its mission of deepening China’s economic influence within the 10 member-states of the Association of Southeast Asian Nations (ASEAN), which lies at the center of Beijing’s ambitions for bringing the region under its continent-spanning One-Belt One-Road initiative. Introduced in 2013 by China President Xi Jinping, the project envisions a modern-day revival of the Silk Road trade routes that once ran unfettered over land and sea, allowing goods of all kinds to be traded across the regions of ancient world, and which derive their name from the highly lucrative Eurasian silk trade that propelled China into a golden age of economic and diplomatic prosperity.

CAF is one of a handful of quasi-state investment funds created by Beijing over the past decade for the purpose of realizing its vision of global commerce. The much larger, US$ 40 billion Silk Road Fund established in 2014, for instance, focuses on supporting businesses rather than the financing of individual projects. China’s commercial and policy bank – including the China Development Bank (CDB) and Asian Infrastructure Investment Bank (AIIB) – are also heavily involved, having received US$ 82 billion for such projects from the central government. Together, they pump capital into countries all along the Silk Road corridor, from Mongolia to Montenegro.

What the Capital is for?

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Why Did Virtus Investment Partners Buy Sustainable Growth Advisers?

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On February 2, 2018, Virtus Investment Partners, Inc. revealed they acquired a 70% interest in Stamford, CT-based Sustainable Growth Advisers, LP, a high-conviction U.S. and global growth equity portfolio management company, from private equity firm Estancia Capital Management and a portion of equity held by the asset manager’s partners (including Sustainable Growth Advisers’ three co-founders). Scottsdale, Arizona-based Estancia Capital Management bought a minority interest in Sustainable Growth Advisers in August 2013 when it had US$ 5.3 billion in assets. Estancia Capital Management is noted for having a number of partners being from Lovell Minnick Partners LLC, a private equity firm specializing in asset management company buyouts.

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HKMA and TRS Participates in Investment in Kakao Mobility

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Private equity firm TPG led a group of investors to acquire a minority ownership stake in Kakao Mobility Corporation, a South Korean taxi hailing service provider. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Meraas Holding Names Former KIO Executive as CEO

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Osama Al-Ayoub, the former CEO and President of the Kuwait Investment Office (KIO), was hired by property firm Meraas Holding to be its chief executive officer. KIO is a London-based unit of the Kuwait Investment Authority (KIA). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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