Connect with us

Concierge Treatment: Private Equity Courts Mega Sovereign Funds and Pensions

Published

on

city_london_west

Over the past few years, sovereign wealth funds have gained a bit of leverage over private equity managers. Sovereign funds like Kuwait Investment Authority (KIA), China Investment Corporation (CIC) and Abu Dhabi Investment Authority (ADIA), have taken ownership stakes in headline private equity firms such as The Blackstone Group and The Carlyle Group. As sapient sovereign funds and mega pensions boost the ranks of their internal private equity teams, they will be larger actors in co-investments and direct deals. According to the Sovereign Wealth Fund Transaction Database, in the first half of 2014, sovereign funds invested directly US$ 51.3 billion. This compares to US$ 42.6 billion in the first half of 2013.

The idea of concierge service, creating separate accounts for mammoth-like investor clients, has been implemented by AUM-rich private equity managers like Apollo, KKR, Carlyle Group and Blackstone Group.

The relatively simplistic demands of sovereign funds and some of the larger-sized U.S. and Canadian pensions have motivated private equity firms to create products with lower risk and longer investment horizons. These cash-rich public pools of capital are constantly redeploying money to find sufficient returns in a low-yield world. For example, CVC Capital Partners, a European private equity firm with extensive relationships with pensions, life insurance companies and sovereign funds, is forming a bespoke private equity fund targeting larger companies and holding positions for an extended period of time. This strategy may lower returns; however, it will help solve the issue of limited partners from constantly redeploying cash. In return for lower expected fund returns, CVC is looking to lower the fees for such a venture. The popular publicly-traded private equity firms are essentially becoming mainstream asset managers, forming a wide-range of solutions for their customers. The idea of concierge service, creating separate accounts for mammoth-like investor clients, has been implemented by AUM-rich private equity managers like Apollo, KKR, Carlyle Group and Blackstone Group.

The Case for CVC

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

White House Nominates Heath Tarbert for CFTC Chairman

Published

on

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.

Continue Reading

KIA Could Sell Stake in North Sea Energy Business

Published

on

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 –

Continue Reading

Pensioenfonds PGB Hires BMO Global for Equity Protection Strategy

Published

on

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.

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.