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Loose Money Forces Sovereign Wealth Funds into Alternatives

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Institutional investors like sovereign wealth funds, superannuation funds and public pensions are riding high on the equity market rallies of 2013. Financial media and conference companies have awarded top performance to a number of chief investment officers – CIO of the year is [fill in the blank.] When will the music stop playing and the doomsayers be correct? Will there be a major market pullback in the middle of 2014? To counter a possible drop in public equities, sovereign funds are allocating capital to real estate funds and/or buying core real estate directly. This trend is clearly evident just by witnessing Norway’s sovereign fund pick up ownership stakes in core assets in New York, Boston, Munich, Paris and London. Just in December, Norges Bank Investment Management inked a deal with Metlife to create a massive U.S. real estate platform targeting Class A office properties.

In addition, private equity raises continue to increase in frequency with larger fund commitments from public asset owners. Since 2009, fundraising has grown year over year, even when private equity funds are lying on lofty chunks of investor capital – waiting for deal opportunities. The target-rich environment from 2009 to 2011 for Western distressed assets has shrunk.

The opiate-like consequences are apparent, long-term asset owners are being forced to purchase riskier assets – enabling 2006 feelings of risk tolerance.

According to research from the Sovereign Wealth Fund Institute, more wealth funds are augmenting asset allocation toward real assets and private equity. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

PGGM Executed its Inaugural Cleared Securities Lending Trade

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Service providers are keen on getting more beneficial owners to participate in the cleared securities lending market. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Altitude Infrastructure Gets Financing on Haute-Garonne Network Project

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Altitude Infrastructure SAS inked a 25-year concession agreement and closed a debt financing package for the deployment and maintenance of an ultra-high-speed broadband network in Haute-Garonne. Haute-Garonne is a department in the south of France.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Guggenheim Partners Agrees to Acquire Millstein & Co.

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On July 11, 2018, Guggenheim Partners inked a deal to acquire New York-based Millstein & Co., L.P., an advisory firm formed by Jim Millstein. Millstein will become co-Chairman of Guggenheim’s securities business. Millstein & Co. will become part of Guggenheim Securities, the investment banking division of the company. Ronen Bojmel will lead the combined Guggenheim restructuring team.

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

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