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RDIF Adds Italy’s FSI to Diverse Array of Co-Investment Funds

networks_fundsThe Russian Direct Investment Fund (RDIF) and the Fundo Strategico Italiano (FSI) signed an agreement on November 26 to contribute roughly US$ 1.35 billion to a strategic investment vehicle designed to promote trade and foreign direct investment in the two countries. According to details about the agreement, each entity will contribute €500 million to the vehicle. The agreement was signed in the presence of Russian President Vladimir Putin and Italy’s Prime Minister Enrico Letta in Trieste.

Maurizio Tamagnini, CEO of FSI, seeks investments in “food, engineering, machinery and other technology-based industries,” he said in a statement.

The RDIF, since its inception two years ago, has been very active and successful in partnering with other sovereign wealth funds and national funds for joint investment purposes. Its first major partner was the China Investment Corporation (CIC) in October of 2011, creating a US$ 2 billion dollar vehicle set to be 70% focused on Russia with the other 30% going toward Chinese investments. The joint vehicle continues to seek funding from Asian investors with hopes to build the fund out to US$ 4 billion.

The boom in investment partners is not likely to end anytime soon.

There were 2 notable deals in 2012. The first was made with the Kuwait Investment Authority (KIA). The KIA agreed to a US$ 500 million co-investment deal. The result is that the KIA will co-invest in all RDIF transactions. Bader Mohammed Al-Saad, Chief Executive Officer and Managing Director, KIA, was named as an international advisor to the RDIF in 2011.

International Advisory Board – Public Funds

Title Chairman and Chief Executive Officer, Blackstone Group  Chairman and Chief Executive Officer, Apollo Global Management  Managing Partner, TPG  Chief Executive Officer, Apax Partners Head of European Operations, Warburg Pincus Co-managing Partner, Permira

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SouthGobi’s CEO Arrested, CIC Struggles with Investment

The China Investment Corporation (CIC) has long struggled with its investments in coal assets, specifically in globally-listed coal miner SouthGobi Resources Ltd, which operates its flagship coal mine in Mongolia. In November 2009, CIC and SouthGobi Resources inked a convertible debenture deal. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Qatar Central Bank Deals with MSCI

MSCI, a stock index company whose benchmarks influence investor behavior, has tremendous indirect power impacting the stock markets of smaller economies. In 1988, MSCI released its emerging markets index, a now-widely-used benchmark for many institutional investors wanting access to growth markets. China and South Korea make up the majority of the benchmark, but smaller economies such as Poland, Chile and even Qatar make up other pieces of it.

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bcIMC Buys into Bottling Business with PAI in €1.623 Billion Takeover of Refresco

Dutch soft-drink bottler Refresco Group N.V. has agreed to a buyout offer for all 81.2 million of its shares from French private equity firm PAI Partners SAS (PAI) and Canadian pension manager British Columbia Investment Management Corporation (bcIMC) in exchange for €20 in cash per ordinary share for a total consideration of €1.623 billion. Refresco’s major shareholders, which includes 3i Group, and shareholding members of its boards, who represent 26.5% of outstanding shares, have said they stand behind the deal.

Refresco’s board rejected an initial offer from PAI in April 2017 of €1.4 billion, which they felt did not adequately capture the value added by their plans to bolster its presence in North America through the acquisition of Canadian bottler Cott TB, a deal that went through in July for US$ 1.25 billion.

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