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Direct Sovereign Wealth Fund Transactions Grow in 2013



According to our proprietary Sovereign Wealth Fund Transaction Database, in 2013, sovereign wealth funds completed 1,883 direct transactions with a total value of US$ 66.05 billion, an increase US$ 1.38 billion from 2012. The number of direct transactions grew by 53.8% from 2012 and tripled the number of transactions compared to 2011. Emboldened sovereign funds amplified direct investments in a number of countries including Germany, Australia and China.

Direct Sovereign Wealth Fund Transactions by Year – Billions USD
sovereign wealth fund transactions
Source: Sovereign Wealth Fund Transaction Database

This reflects that larger sovereign wealth funds are investing directly into assets such as bonds, stocks, real estate and even infrastructure. In general, sovereign funds have had the augmented capabilities to attract talent to improve internal operations and deal sourcing. Another interpretation is that sovereign funds are investing frequently, but in lower deal amounts. One explanation is that through 2007-2009, sovereign funds bailed out financial institutions, domestic governments and bet big on large industrial companies.

Popular Sectors for Direct Sovereign Wealth Fund Investment

The real estate sector dominated 2013, with over US$ 17.5 billion recorded in direct sovereign wealth fund transactions. This was followed by the financial sector at around US$ 11 billion and the materials sector at approximately US$ 9.2 billion.

Top 5 Sectors for 2013 – Direct Sovereign Fund Transactions

Sector Weight
Real Estate 27%
Financials 17%
Materials 14%
Energy 10%
Utilities and Infrastructure 8%
Other Sectors 24%

Source: Sovereign Wealth Fund Transaction Database

Trump to Swat Down Petro Cryptocurrency



In a bid to exert economic pressure on the Venezuelan government headed by President Nicolas Maduro, U.S. President Donald Trump issued an order on March 19th that prohibits U.S. citizens from purchasing a cryptocurrency that the Venezuelan government is releasing. The cryptocurrency is called the Petro. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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DP World and NIIF Joint Venture Embarks on First Investment



Hindustan Infralog Private Limited, the US$ 3 billion joint venture formed in January 2018 between DP World and the National Investment and Infrastructure Fund (NIIF) to invest in ports, logistics and warehousing, agreed to acquire 90% of Continental Warehousing Corporation (Nhava Seva) Limited for US$ 400 million. 10% is being retained by the company’s founders – the Reddy family. Adi Keshav Reddy is the founder of Continental Warehousing. This is the first investment of the Hindustan Infralog platform.

The sellers include Warburg Pincus India Pvt Ltd, International Finance Corporation (IFC) and Aureos Capital, a joint venture between the CDC and Norfund that was acquired by Abraaj Capital.

Barclays, Citi and Detusche Bank advised on the transaction.

Continental Warehousing was formed in 1997 and is one of India’s biggest container warehousing firms – operating container freight stations and private freight terminals across India. In April 2011, Warburg Pincus invested in Continental Warehousing, committing US$ 100 million. In December 2015, IFC invested US$ 25 million in equity and lent US$ 35 million in debt to Continental Warehousing.

In India, DP World has been operating container port terminals since 1997.

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SWFI First Read, March 18, 2018



Surbana Jurong and China Vanke Tie up Deal for Industrial Town Projects

Surbana Jurong, a real estate development company focused on urban projects, inked a deal with China Vanke to partner on new industrial towns in China’s midwest regions. Surbana Jurong is majority-owned by Singapore’s Temasek Holdings. The first joint project is Vanke’s Jianzhou Dream Town in Chengdu. Surbana will provide the design for this project.

PIF Eyes Hollywood Talent

Saudi Arabia’s Public Investment Fund (PIF) is looking at investing around a 7% stake in Endeavor, LLC, a talent agency holding entity of WME for a reported US$ 400 million. Ari Emanuel is the CEO of Endeavor. PIF’s financial advisor for this deal is Michael Klein & Co. Endeavor is being advised by Ares Holdings.

Alex Wilmot-Sitwell of BAML Resigns

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

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