Connect with us

Top 10 Sovereign Wealth Fund Game-Changers of 2012

Published

on

SWFI_logo_122012 proved to be a dynamic year for sovereign wealth funds in terms of policy decisions and investment strategies. Notably, a number of sovereign funds were created, especially in resource rich nations like Angola. Our staff has compiled a list of the top ten game-changers that will set the tone for sovereign wealth funds in 2013.

10.) Sovereign Wealth Bankers

As Western banks are smacked with a surplus of regulations, banks are not lending as much, especially to projects and certain lines of business. Financial institutions are concerned about illiquid investments; Basel III makes it more challenging. Banks are cautious about adding illiquid liabilities on their balance sheets. Sovereign wealth funds have the chance of becoming the new bankers for the next decade. Many are creating offshore entities to begin lending operations.

Sovereign wealth funds are involved in the real estate lending business. For example, Singapore’s GIC was a lender for the resorts that Paulson and other investors owned. When Paulson & Co lost the resorts, Singapore’s GIC purchased them in bankruptcy.

9.) Capital Competition, Spreads Across Continents

The world is competing for capital, more so than ever before. Russia has constructed state investment vehicles like the Russia-Direct Investment Fund (RDIF) to boost their economy and give foreign investors access to opportunities in Russia untouchable in years past. A number of nations in the Middle East are developing policies to attract long-term investments, such as co-investing in government energy infrastructure.

Capital-starved Europe continues to sell off public assets to amass capital to pay down unsustainable deficits. Even, China has removed the QFII barrier for sovereign wealth fund investors to provide long-term capital in their domestic security markets.

8.) Fertilizer, Food and Milk

The world now has around 7 billion people. Population growth, modifications in tastes and preferences, limited resources, and environmental issues are factors pushing up the price of food. Mega institutional investors want access to agriculture and land as an asset class.

Fertilizer is in demand, as farmlands need to increase productivity. The China Investment Corporation invested Uralkali OAO, a global potash producer that possesses five mines and seven ore-treatment mills located in Perm Territory in Russia. There has been sovereign wealth interest in dairy farms in New Zealand. Middle Eastern SWFs and other public pension funds have been purchasing agricultural land and food companies in Latin America.

7.) Investing in Financials in Developing Middle-Class Economies

Singapore’s Temasek Holdings purchased a stake in a November secondary public offering in Turkiye Halk Bankasi AS, a government-owned bank in Turkey. It is Turkey’s second largest state-owned bank by assets. In September 2012, the Government of Singapore Investment Corporation Private Limited was subscribing to a Hong Kong H-share private placement by China Pacific Insurance (Group) Co Ltd (CPIC).

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

Antares Bain Capital Complete Financing Solution Backs symplr Deal

Published

on

On December 10, 2018, Antares Bain Capital Complete Financing Solution provided a senior secured unitranche credit facility for Clearlake Capital Group, L.P. to acquire symplr, a healthcare governance, risk, and compliance software-as-a-service platform from Pamlico Capital and The CapStreet Group. Golub Capital provided financing for the transaction as well.

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

Continue Reading

PSP Investments Exits Antelliq

Published

on

On December 14th, Private equity firm BC Partners, Public Sector Pension Investment Board (PSP Investments), and other minority co-investors have signed a definitive agreement with Merck, known as MSD outside the United States and Canada, to sell Antelliq Corporation, a Vitré, France-based provider of digital animal identification, traceability, and monitoring solutions. Upon close, Antelliq will be a wholly owned and separately operated subsidiary within the Merck Animal Health Division. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

JPMorgan Edges Out Hamilton Lane on Florida SBA In-State Mandate

Published

on

The Florida State Board of Administration (SBA) manages a plethora of Florida state funds, including the state’s defined benefit plans. Florida’s SBA awarded a private equity portfolio mandate which targets high-technology businesses in Florida to J.P. Morgan Asset Management. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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.