Connect with us

Lewis Fallout: Public Fund-Backed PE Firm Faces Stress Over HFT Investment

Published

on

nyc_realestate_sovereignwealthfundSilicon Valley-based Silver Lake Partners, which touts public pensions and sovereign wealth funds as limited partners through its various funds, invested in New York-based Virtu Financial. Two investor examples are the Kuwait Investment Authority and the Alaska Permanent Fund Corporation. Virtu Financial has postponed its planned US$ 100 million initial public offering indefinitely, due to fallout from Michael Lewis’ Flash Boys: Cracking the Money Code. The 53-year-old writer sold 130,000 copies of Flash Boys in the United States after the first week of publication. In late March, the New York Times reported Virtu Financial made money in equity markets in 1277 days out of 1278 days. Silver Lake-backed Virtu Financial has received a letter of inquiry from New York Attorney General Eric Schneiderman.

Silver Lake has invested in a slew of financial technology firms that aim to bring “efficiency” to markets.

The California Public Employees’ Retirement System (CalPERS) purchased a 9.9% interest in Silver Lake Partners back in early 2008 for a purported estimate of US$ 275 million. The technology-focused private equity firm has invested in deals involving Dell, Seagate and Skype. Silver Lake has invested in a slew of financial technology firms that aim to bring “efficiency” to markets.

Silver Lake allocated capital to Virtu back in 2011. In a May 2011 Virtu press release, the chairman and CEO of Virtu, Vincent Viola, stated, “Virtu’s mission is twofold. First, to provide market participants and regulators with access to its proprietary market data distribution, market surveillance, risk management, clearing and price discovery tools. Second, to provide retail and institutional investors with reliable, real time competitive prices so that they can continue to benefit from further compression of bid/ask spreads and reduced trading commissions.”

Goldman Sachs, Sandler O’Neill + Partners, L.P. and JP Morgan were the lead underwriters of the postponed Virtu IPO.

Emirates NBD Acquires Turkey’s Denizbank in $3.2 Billion Deal with Sberbank

Published

on

In a bid to establish itself as one of the region’s leading providers of financial services, Emirates NBD – Dubai’s largest bank – has entered into a deal to acquire a 99.99% stake in Turkey’s DenizBank A.Ş. for a bargain price of US$ 3.2 billion from Russian state-owned lender Sberbank. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Brazilian President Michel Temer Orders Liquidation of Sovereign Wealth Fund

Published

on

Brazilian President Michel Temer signed an executive order to shut down the country’s sovereign wealth fund. The money in the sovereign fund will go toward repayment of foreign debt.

The Sovereign Fund of Brazil, also known as Fundo Soberano do Brasil, was formed in 2008.

The formation of the Fundo Soberano do Brasil was authorized by then Brazilian President Luiz Inacio Lula da Silva.

Continue Reading

CDPQ Boosts Stake in Invenergy Renewables

Published

on

Caisse de dépôt et placement du Québec (CDPQ) boosted its ownership stake in Chicago-based Invenergy Renewables LLC. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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.