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Why CPPIB and Ares Withdrawing Neiman Marcus from its IPO is a Big Deal

Are large-chain physical retail stores decaying in North America? Are financial investors failing department store retail?

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Direct institutional investors such as the Canada Pension Plan Investment Board (CPPIB) and other private equity firms plugged in mounds of capital into department store companies in North America. Will these significant financial bets pay off? The bad news in retail keeps rolling in. In early January, The Limited, a women’s clothing store chain, is closing all of its 250 stories and laying off 4,000 employees. The Limited is owned by private equity firm Sun Capital Partners, which witnessed falling foot traffic at U.S. shopping malls. Even Macy’s, the largest department-store company in the United States, is shuttering 100 stores in 2017. This will end up removing 10,000 jobs at Macy’s. In addition, Illinois-based Sears Holdings Corporation, which also owns Kmart, is closing 150 stores and even sold its iconic Craftsman tool brand to Stanley Black & Decker to stave off financial ruin. Sears is led by Eddie Lampert, a hedge fund manager, who is trying to keep the company away from financial insolvency. Lampert even provided around US$ 1 billion in financing for Sears to maintain operations. Both Lampert and another hedge fund titan Bill Ackman of Pershing Square have tried their activist hands attempting to turn retail giants into “tech companies”. Ackman exited its Target investment in 2011.

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Turkey Wealth Fund Corrals Investors Toward Domestic Projects

The Turkey Wealth Fund is continuing talks with other global asset owners and financial institutions to lure capital toward projects and assets within the country. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Ardian Auctions Off €1 Billion in Infrastructure Assets to APG

French private equity giant Ardian has auctioned off an undisclosed stake in a portfolio of European infrastructure assets valued at €1 billion to Dutch asset owner manager APG Investments. APG, which first invested in the portfolio in 2006, plans on buying out partnership interests in the portfolio held by other investors. French multinational insurance firm AXA SA will retain its stake as a co-owner of the portfolio alongside APG, with Ardian staying on as asset manager and advisor. The transaction remains subject to regulatory approval.

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Tribal Council Approves Cherokee Nation Sovereign Wealth Fund Act

Tahlequah, Oklahoma-based Cherokee Nation Tribal Council approved the creation of the Cherokee Nation Sovereign Wealth Fund Act to establish a fund to ensure the continuation of tribal operations and the general welfare of tribal citizens.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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