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SWFI First Read, March 4, 2018



HKMA’s Exchange Fund Has Best Year in Nearly a Decade

The Hong Kong Monetary Authority’s Exchange Fund generated an unaudited 7.1% annual return for 2017 versus a 2.0% annual return for 2016. This is the best annual return for the fund since 2007 at 11.8%, which followed a 2008 return of -5.6%. At the end of September 2017, HKMA’s Exchange Fund had 214.5 billion HKD in private equity (141.1 billion HKD) and real estate (73.4 billion HKD).

UPDATED: Axa to Buy XL Group

March 5, 2018 – UPDATED: French insurance giant Axa SA agreed to buy U.S. property and casualty insurer XL Group Ltd. for US$ 15.3 billion in cash

PREVIOUS: French insurance giant Axa SA is in negotiations of possibly buying U.S. property and casualty insurer XL Group Ltd., which is headquartered in Hamilton, Bermuda. XL Group has a market value of around US$ 11 billion.

U.S. Moves to Defend Steel and Aluminum Industry, EU Threatens

The United States government moved to put a 25% duty on steel and 10% on aluminum, after decades of trade abuse in the industry, according to the U.S. government. In response, European commission president Jean-Claude Juncker warned they could target American brands such as Levis, Harley-Davidsons and Kentucky bourbon whiskey. Countering, the U.S. President warned they could put the lucrative European export auto industry in the country’s crosshairs.

On March 3, 2018, U.S. President Donald Trump tweeted, “The United States has an $800 Billion Dollar Yearly Trade Deficit because of our “very stupid” trade deals and policies. Our jobs and wealth are being given to other countries that have taken advantage of us for years. They laugh at what fools our leaders have been. No more!”

Lighthouse Investment Partners to Buy Most of Mesirow Advanced Strategies

Lighthouse Investment Partners, LLC agreed to acquire substantially all of the assets of Mesirow Advanced Strategies, the multi-manager hedge fund division of Mesirow Financial, an employee-owned firm that is trying to focus more on its core business. The deal is expected to close mid-year 2018. Following the expected completion of the transaction, Mesirow Financial is expected to serve as a distribution partner to Lighthouse. Mesirow Advanced Strategies has around US$ 8 billion in assets under management. In June 2017, Palm Beach Retirement System dropped Mesirow Advanced Strategies in an US$ 8 million hedge fund-of-funds portfolio.

DP World and NIIF Joint Venture Embarks on First Investment



Hindustan Infralog Private Limited, the US$ 3 billion joint venture formed in January 2018 between DP World and the National Investment and Infrastructure Fund (NIIF) to invest in ports, logistics and warehousing, agreed to acquire 90% of Continental Warehousing Corporation (Nhava Seva) Limited for US$ 400 million. 10% is being retained by the company’s founders – the Reddy family. Adi Keshav Reddy is the founder of Continental Warehousing. This is the first investment of the Hindustan Infralog platform.

The sellers include Warburg Pincus India Pvt Ltd, International Finance Corporation (IFC) and Aureos Capital, a joint venture between the CDC and Norfund that was acquired by Abraaj Capital.

Barclays, Citi and Detusche Bank advised on the transaction.

Continental Warehousing was formed in 1997 and is one of India’s biggest container warehousing firms – operating container freight stations and private freight terminals across India. In April 2011, Warburg Pincus invested in Continental Warehousing, committing US$ 100 million. In December 2015, IFC invested US$ 25 million in equity and lent US$ 35 million in debt to Continental Warehousing.

In India, DP World has been operating container port terminals since 1997.

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SWFI First Read, March 18, 2018



Surbana Jurong and China Vanke Tie up Deal for Industrial Town Projects

Surbana Jurong, a real estate development company focused on urban projects, inked a deal with China Vanke to partner on new industrial towns in China’s midwest regions. Surbana Jurong is majority-owned by Singapore’s Temasek Holdings. The first joint project is Vanke’s Jianzhou Dream Town in Chengdu. Surbana will provide the design for this project.

PIF Eyes Hollywood Talent

Saudi Arabia’s Public Investment Fund (PIF) is looking at investing in a less than 10% stake in Endeavor, LLC, a talent agency holding entity of WME for a reported US$ 400 million.

Alex Wilmot-Sitwell of BAML Resigns

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Mubadala Invests in No Fly Zone Drone Radar Company



Data Collective led a US$ 15 million Series A round into Salt Lake City-based Fortem Technologies, Inc., a company that works on solutions that can detect, identify and classify drones in real time to maintain airspace safety. Other investors in the round include Boeing, Mubadala Investment Company, Manifest Growth, New Ground Ventures and Signia Venture Partners.

Ibrahim Ajami, Head of Mubadala Ventures said in the press release, ” Mubadala is excited to work with Fortem and its outstanding leadership team to help grow its business to new markets.”

Ajami added, “We strongly believe the TrueView radar is essential to maintain a safe airspace for both the aircraft and the critical infrastructure on the ground.”

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