Connect with us

Pension and Sovereign Wealth Capital Throw Money at Google’s Verily

Published

on

Verily, formerly known as Google Life Sciences, is a life sciences research and engineering organization that was formed by Alphabet Inc. The company received a US$ 1 billion investment in a round led by private equity firm Silver Lake Partners and was joined by the Ontario Teachers’ Pension Plan. Goldman Sachs and Co LLC acted as financial adviser to Verily on the capital raise. Verily has generated revenue under research and development services and is placed in the Other Bets segment of Google. For example with regard to R&D revenue, Gilead Sciences, Inc. is paying up to US$ 90 million over a 3-year period to Verily to run tests on the white blood cells of patients with rheumatoid arthritis, inflammatory bowel disease, and lupus.

Burning Small Money Relative to Google Empire

Other Bets segment includes businesses such as Access, Calico, CapitalG, Chronicle, GV, Verily, Waymo, and X. From the 9-months ended September 30, 2018, the Google Other Bets segment generated US$ 441 million in revenue versus the US$ 346 million revenue figure from September 30, 2017 – ending 9 months. From the 9-months ended September 30, 2018, the Google Other Bets segment had an operating loss of US$ 2,030 million versus a US$ 1,986 million operating loss from September 30, 2017 – ending 9 months.

In December, Verily revealed a strategic partnership with Walgreens that will hone in on managing chronic conditions and lowering overall healthcare costs. Verily has announced a number of partnerships including firms such as Gilead and ResMed. Verily is taking a somewhat risky approach in having many projects done in partnerships with firms that are specialized in areas such as pharmaceuticals and devices. This leads to less control in product direction.

New Board Members

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

Qatar Steps Up for Lebanon, Plans $500 Million Bond Purchase

Published

on

Qatar Sheikh Tamim bin Hamad Al Thani appeared at an Arab economic summit and it was revealed that Qatar plans to purchase US$ 500 million of Lebanese government bonds. Earlier, there was speculation Qatar was going to deposit US$ 1 billion in Banque du Liban (Bank of Lebanon), which was never confirmed by the bank.

Lebanese officials in January revealed the possibility of a debt restructuring. The International Monetary Fund calculated that public debt in Lebanon is at over 160% of gross domestic product this year and could raise to around 180% by 2023.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Turkey Wealth Fund Could Provide Support to Credit Card Debt Market

Published

on

Recep Tayyip Erdoğan, the President of Turkey, has a new reform to jump start the consumer debt-laden economy, and it involves Turkey’s sovereign wealth fund. His strategy is to offer money to those facing overwhelming credit card debt. Ziraat Bank (Türkiye Cumhuriyeti Ziraat Bankası) will allow borrowers to apply for debt rescheduling and secure lower interest rates. Erdogan announced that “Any retail client from any bank can apply.” Credit card debt is a monstrous problem in the country. Consumer credit has exploded due to low rates, government assistance, and easy credit availability. Last summer, non-housing debt reached US$ 97 billion. Half of this is credit card debt. Over US$ 30 million is non-performing. The debt was accumulated in foreign currencies, because they used to provide the lowest interest rates. Unfortunately, as the Turkish lira’s exchange rate cratered, much of the debt became impossible to service. The lira is among the world’s weakest currencies. Erdogan expects a smooth transition, “They will pay off their debt with a loan from Ziraat, and will pay it back according to the level of their monthly earnings.” Ziraat Bank is managed by Turkey’s sovereign wealth fund, which is chaired by President Erdoğan.

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

Continue Reading

KIC Sells City of London Office to South African Investor

Published

on

Investec Structured Property Finance, part of Investec, provided a £107 million loan to a South African investor being represented by London-based Pembrey Asset Management Ltd to acquire an office in London at One Bartholomew Lane. The Korea Investment Corporation (KIC) is the ultimate owner of the office and is selling it through Hines UK, part of Hines. BNP Paribas Real Estate acted on behalf of Pembrey Asset Management and CBRE acted on behalf of Hines.

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.