Connect with us

Sovereign Funds Ramp Up Healthcare Investments

Published

on

With the United States experiencing an economic recovery, the healthcare industry is expected to prosper as it remains a significant proportion of the country’s gross domestic product (GDP). Sovereign investors are increasing positions in health-related industries such as pharmaceuticals, genome analysis and diagnostic technologies, while large Canadian pension plans have been investing in specialty healthcare chains.


May 11, 2017 Correction, the earlier graph had billions, it should be millions.

Sovereign funds continue to tap their extensive deal network when it comes to identifying large-scale healthcare opportunities in the United States. Many of these sovereign funds, such as the Abu Dhabi Investment Authority (ADIA), are limited partners in private equity funds that target pharmaceuticals and healthcare companies. For example, in April, ADIA and Singapore’s GIC Private Limited acquired minority ownership interests in Pharmaceutical Product Development, LLC (PPD), a clinical research company based in North Carolina. The recapitalization deal scored PPD at an enterprise value of US$ 9.05 billion. In a much smaller investment transaction, Australia’s Future Fund participated in a US$ 200 million growth equity funding round into El Segundo, California-based Radiology Partners. Radiology Partners claims it’s the largest on-site physician-led radiology practice in the United States.

According to data from the Sovereign Wealth Fund Institute (SWFI), sovereign funds directly invested over US$ 6.2 billion into the global health care sector in 2016. This figure does count externally-managed funds or private fund vehicles. In 2015, wealth funds directly invested US$ 6.9 billion and in 2014 directly invested US$ 4.3 billion. In the final quarter of 2016, direct investments by sovereign investors into healthcare was buoyed by global equity markets.

Pharmaceuticals

Pharmaceuticals have always intrigued sovereign funds. For example, in mid-to-late 2016, Norway’s Government Pension Fund Global (GPFG), in the open market, invested well over US$ 100 million into Abbott Laboratories. In the summer of 2016, the Korea Investment Corporation (KIC) had partnered with CDC International Capital, the multi-asset class investment company of the Caisse des Dépôts Group to back Ethypharm, a specialty pharmaceuticals company focus on treating pain and addictions. Permanent funds such as the Alaska Permanent Fund Corporation invested in South San Francisco-based Denali Therapeutics Inc. in 2016. Denali Therapeutics is constructing a portfolio of therapeutics, focusing in areas such as the triggers or effectors of neurodegeneration. AFPC has a track record of backing emerging pharmaceutical companies such as Seattle-based Juno Therapeutics. All in all, the trend line shows that wealth fund capital is not backing away from the healthcare sector.

Mergermarket Gets Ready to be Sold

Published

on

Private equity firm BC Partners hired Goldman Sachs Group Inc. and JPMorgan Chase & Co. to advise on the sales of Acuris. Acuris is a collection of financial news and data sites, which includes Mergermarket, Dealreporter, and Debtwire. In 2017, BC Partners sold around a 30% stake in GIC Private Limited.

Before the rebranding to Acuris, Mergermarket was part of The Financial Times Group until 2013 when it was sold off to BC Partners.

Continue Reading

Why Japan Post Sees Promise in Aflac

Published

on

Aflac Inc. is an American insurance company founded in 1955. The company is the biggest provider of supplemental insurance in the United States. Aflac also has major operations in Japan.

In December 2018, Japan Post Holdings (JPHLF) signaled it was spending US$ 2.64 billion for a 7-8 % stake in Aflac. The goal is that, in four years time, Aflac will become an affiliate of Japan Post. Japan Post hopes to accomplish this by becoming the largest voting shareholder of the company. The world’s 13th largest company, with 400,000 employees, Japan Post needs to expand to chase further growth, mainly because Japan Post expects the postal business to decline. Diversification is seen as the optimal route to long term stability for the holding company. Japan’s economy is worrying. Japan’s aging population means that many insurance companies are facing a shrinking customer base, Japan Post settled on a plan to expand overseas.

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

Continue Reading

RDIF and Development Agency of Serbia Agree to Explore Joint Investments

Published

on

The Russian Direct Investment Fund (RDIF) and the Development Agency of Serbia, also known as Razvojna agencija Srbije, reached an agreement to work together to identify attractive investment projects to strengthen bilateral economic ties and increase investment flows between Russia and Serbia. Russian capital and businesses are keen on investing in Serbia.

In addition, the two countries signed an agreement to cooperate on civil nuclear energy, according to state-owned Russian reactor builder Rosatom (Rosatom State Nuclear Energy Corporation). Rosatom continues to expand it business of nuclear cooperation deals in a wide number of countries.

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.