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SWFI First Read, January 4, 2017



Trump to Nominate Jay Clayton as SEC Chairman

U.S. President-elect Donald Trump is putting forward Jay Clayton, to head the U.S. Securities and Exchange Commission (SEC). Clayton is a partner at law firm giant Sullivan & Cromwell LLP. If confirmed by the U.S. Senate, he would replace Mary Jo White.

“Jay Clayton is a highly talented expert on many aspects of financial and regulatory law, and he will ensure our financial institutions can thrive and create jobs while playing by the rules at the same time,” Trump said in a statement.

Mackenzie Financial Corporation Acquire Stake in China AMC

IGM Financial Inc. is keen on getting exposure to China’s growing asset management sector and diversify its business ex-Canada. On December 29, 2016, IGM Financial announced that its subsidiary, Mackenzie Financial Corporation, has entered into an agreement to acquire a 10% interest in China Asset Management Co., Ltd. for approximately 2.4 billion RMB (C$ 468 million). Mackenzie Investments has the opportunity to increase its equity position by an additional 3.9% in January 2017 through another purchase agreement. Both transactions involve separate non-strategic shareholders that are state-owned enterprises in China. In addition, Mackenzie Investments, which is part of Mackenzie Financial Corporation, has had a relationship with China Asset Management Co., Ltd. since 2011. BMO Capital Markets acted as financial advisor to IGM Financial on this transaction.

Vitol Inks Loan Deal with National Iranian Oil Co.

The lifting of Iranian sanctions has been a boon to energy companies in Europe. Rotterdam, Netherlands-based Vitol, the largest oil trader in the world, inked a deal with the National Iranian Oil Co. (NIOC). Vitol is loaning an equivalent of US$ 1 billion in euros guaranteed by future exports of refined products. The Vitol-NIOC pre-finance deal was initially signed back in October 2016.

New Mexico Public Employees’ Retirement Association Dumps Cliffwater for Two Consultants

The New Mexico Public Employees’ Retirement Association hired two investment consultants, replacing the incumbent consultant Cliffwater. TorreyCove Capital Partners will assist the pension in illiquid credit and credit-oriented hedge funds, while Albourne Partners will assist the pension in searches for real asset managers and hedge funds. The New Mexico Public Employees’ Retirement Association has a target 15% credit allocation and a target 20% allocation to real assets.

GTCR Combines LiquidPoint with Dash Financial

Private equity firm GTCR, based in Chicago, owns a controlling interest in brokerage firm Convergex. GTCR is contributing LiquidPoint, Convergex’s Options Trading and Technology business, to merge with Dash Financial, a trading, analytics and execution technology provider. These are two complementary businesses. The combined entity will operate as Dash Financial Technologies and be majority owned by GTCR. The independent company will be led by Peter Maragos as CEO and Ben Londergan as President. Dash Financial was advised on the transaction by Raymond James and Sidley Austin LLP served as Dash Financial’s legal counsel. Kirkland & Ellis LLP served as legal counsel for GTCR and Convergex.

ConvergEx Group, LLC acquired LiquidPoint in July 2007.

AP Pension Invests in Island RE Development

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Citing Improving Economy, Federal Reserve to Raise Rates



Jerome H. Powell made his debut by expressing optimism in the United States economy. The Federal Reserve agreed to increase interest rates by a quarter of a percentage point – benchmark interest rate from1.5% to 1.75%. This is the sixth time the Federal Reserve raised rates since the global financial crisis. The central bank also signaled a possible two more rate raises in 2018 and three rate increases in 2019.

At the press conference, Powell commented that the U.S. economy was healthier than it had been in 10 years.


Voting for the FOMC monetary policy action were Jerome H. Powell, Chairman; William C. Dudley, Vice Chairman; Thomas I. Barkin; Raphael W. Bostic; Lael Brainard; Loretta J. Mester; Randal K. Quarles; and John C. Williams.

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Temasek Leads Series E in 17ZUOYE



17ZUOYE (also known as Homework Together) is an online education platform that is owned by Beijing-based Sunny Education Inc. 17ZUOYE was founded by Liu Chang and Xiao Dun in October 2011. The company raised US$ 250 million in a Series E round in funding led by Singapore’s Temasek Holdings. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Abu Dhabi Investment Council to Consolidate into Mubadala



UAE President Sheikh Khalifa bin Zayed Al Nahyan issued a groundbreaking law that restructures the Abu Dhabi Investment Council (ADIC) to be under the Mubadala Investment Company group. Under the new law, the Mubadala Investment Company Board of Directors will now become the Board of Directors for the Abu Dhabi Investment Council. Furthermore, ADIC management will continue to run the council. Eissa Mohammed al Suwaidi will continue to lead ADIC as its Chief Executive Officer, and will report to Mubadala Group CEO and Managing Director Khaldoon Khalifa al Mubarak.

In a release, he commented, ADIC becoming part of the Mubadala Group is yet another step in Abu Dhabi’s efforts to accelerate the diversification of the UAE’s economy. With an investment vehicle of significant scale, world-class talent and wide geographical reach, we enhance the country’s competitive position.”

Earlier in 2017, Mubadala Development Company merged with International Petroleum Investment Company (IPIC). This is a trend in Abu Dhabi to create economies of scale within these large state-owned entities.

In 2007, ADIC started operations after it splintered off from the Abu Dhabi Investment Authority (ADIA). A significant portion of ADIC’s holdings include stakes in large financial institutions in the UAE.

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