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Friday SWFI News Roundup, April 10, 2015

tibblesDoes this cute cat have your attention? Here are the roundups for April 10th.

Investment Corporation of Dubai Invests in 3 Luxury Hotels

Gulf sovereign wealth funds are betting big on luxury hotel properties. The Investment Corporation of Dubai (ICD) invested in three luxury hotels – two in the United States and one in South Africa. ICD acquired the W Hotel in Washington D.C. In addition, ICD acquired a majority position in the Mandarin Oriental in New York City and a minority interest in the One & Only resort in Cape Town, South Africa. In 2014, ICD invested in a large stake in Kerzner International, founded by South African Solomon (Sol) Kerzner. ICD owns the Atlantis resort on the Palm Jumeirah, paying US$ 250 million in 2014 for the remaining 50% holding from a unit of Dubai World. Furthermore, ICD is constructing a US$ 1.5 billion luxury resort on Palm Jumeirah with Kezner International called Royal Atlantis Resort and Residences.

From a press release, ICD CEO Mohammed Al Shaibani stated, “Building on our strong domestic growth in the hospitality and tourism sectors, this strategic move reinforces ICD as a serious contender in the global luxury hospitality space.”

Serco Capital Raise, GIC Participates

Singapore’s sovereign wealth fund GIC Private Limited is subscribing to a £555 million capital raise in British outsourcing firm Serco Group plc. The sovereign fund has a 6.4% ownership interest in Serco, about 35.17 million ordinary shares. The other larger shareholder is Invesco, controlling about 9.98% of ownership. JP Morgan Cazenove and Bank of America Merrill Lynch International are joint sponsors and bookrunners. Barclays Bank and HSBC are co-bookrunners. Credit Agricole is the lead manager. Rothschild is the financial advisor for Serco.

Apax Partners Seek Permanent Financing Solution

Apax Partners, a European private equity firm, is prepping for an initial public offering for its Permanent Capital Vehicle to be traded in London. In fact, the Permanent Capital Vehicle is the single largest investor in Apax funds. This vehicle is a company that was setup six years ago. It sold stakes to sovereign wealth funds. Sovereign wealth funds GIC Private Limited, Australia’s Future Fund and China Investment Corporation do not plan to sell their interests in the Apax vehicle.

Credit Suisse and Jeffries are financial advisors to Apax Partners.

EnCap Investments Raises $6.5 Billion for Latest Fund

This week Houston-based EnCap Investments L.P. closed on EnCap Energy Capital Fund X, L.P. raising US$ 6.5 billion of limited partner capital commitments. This fund will target control equity investments in oil and gas exploration and production companies in the United States and Canada. EnCap Investments was founded in 1988. This is EnCap Investments’ 19th institutional fund.

Mubadala Petroleum Serves Notice of Default to Northern Gulf Petroleum

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SWFI First Read, December 15, 2017

Gaw Capital Sells Cross Tower Shanghai Building

Hong Kong-based Gaw Capital Partners has agreed to sell the Cross Tower, a 24-storey commercial building in Shanghai, to World Union Investment Management, for 2.66 billion RMB (US$ 402 million). The tower is located in the Huangpu district.

RDIF Portfolio Company Geopharm Plans to Increase Insulin Production

Russia-based Geopharm is a portfolio company of the Russian Direct Investment Fund (RDIF). Geopharm signed a special investment agreement with the City of St. Petersburg, Russia. Geopharm plans to invest more than 3.3 billion rubles in building a complex to meet insulin production demands.

Norway’s KLP to Exclude Companies with Oil Sands Extraction via Revenue Threshold

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NZ Super Resumes Government Contributions

The New Zealand Superannuation Fund (NZ Super) has resumed receiving contributions from the New Zealand government in the face of rising obligations as an increasing proportion of the country’s population approaches retirement. According to a statement released by the fund’s managing Board of Guardians, the government plans on investing US$ 5.3 billion into NZ Super between now and June of 2022, with the first payment scheduled for December 15, 2017.

Policymakers believe the resumption of government contributions, which were halted in July of 2009, is expected to ease the burden on the country’s current taxpayers and future generations. Withdrawals from NZ Super are expected to peak in 2078, at which point the fund will be covering 12.8% of New Zealand’s pension obligations. The new wave of contributions will initially be invested in passive, low cost equity and bond investments, according to Catherine Savage, Chair of the Guardians.

Recent Performance & Leadership Change

NZ Super has enjoyed one of its best annual performances since its founding in 2001, with a reported return of 20.7% before tax for a 12-month trailing period ended June 30, 2017, up 5 billion NZD (US$ 3.6 billion) compared to 2016. NZ Super generated 21.85% annual return in its global equities, developed market portfolio, according to its 2017 annual report.

NZ Super faces a changing of leadership in the coming year with the exit of chief executive Adrian Orr, who will leave the Fund officially in March of 2018 to serve a five-year term as Governor of the Reserve Bank of New Zealand. Mr. Orr has earned a spot numerous times in the Sovereign Wealth Fund Institute’s Public Investor 100 annual ranking over the years, most recently in 2017 at #3.

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iZettle Raises US$ 47 Million in Series E, Prepares for 2018 Listing

Card transaction platform iZettle AB has raised another US$ 47 million in Series E funding, this time with new backing from Sweden’s AP4 and early-stage venture capital firm Dawn Capital. Previous investors in the Stockholm-based payments business include American Express, MasterCard, Intel, and Spain’s Santander Group. With US$ 235 million in equity to date, iZettle is quickly approaching an estimated valuation of US$ 1 billion.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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