Sovereign Wealth Fund Scope of Direct Energy-Related Transactions

According to the Sovereign Wealth Fund Institute’s transaction database, from the beginning of 2008 till August 2013, over US$ 76.3 billion has been directly invested in energy-related assets and companies. This illustrates the story of a five-year trend of sovereign wealth funds plowing billions into energy – betting heavily on world energy demands. The US$ 76.3 billion includes energy companies, exploration firms, utilities and energy-related infrastructure. This does not include energy-related technology companies or real estate. In addition, this aggregated transaction amount includes only direct sovereign wealth fund transactions, not fund investments. It is crucial to highlight that sovereign wealth funds are limited partners in some of the world’s highly-desired private equity energy funds.

And the winner is?

Europe appears to be the prime recipient of direct sovereign wealth fund investment in the energy sector from 2008 till August 2013 – totaling US$ 40.8 billion (254 recorded transactions). Within Europe, the United Kingdom and the rest of Western Europe receive the bulk of it. Sovereign wealth fund energy stock favorites include Royal Dutch Shell Plc, BP Plc, BG Group Plc and Total SA. Eastern Europe and Russia pocket a far less substantial amount of sovereign wealth fund investment in energy mostly through fund investments.

Direct Sovereign Wealth Fund Investments in Energy-Related Assets and Companies
Billions USD – Jan 2008 to Aug 2013
Click on Image to Enlarge
sovereign wealth fund energy
Source: Sovereign Wealth Fund Transaction Database

North America follows Europe with US$ 11.8 billion (191 recorded transactions). Both regions prospered in direct sovereign wealth fund investments through open market transactions and negotiated deals. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Contact the writer or creator of this article or page.
Questions or comments: support(at)swfinstitute(dot)org
Follow on Twitter at @swfinstitute and @sovereignfunds
Learn, Attend and Network: Institutional Investor Events and Summits
Go Back: HOME: Sovereign Wealth Fund Institute

institutional investor investment mandates