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Qatar withdraws from race for Grosvenor House and New York Plaza

Posted on 27 September 2016 by VRS  |  Email |Print

The Qatar Investment Authority has abandoned talks to buy London’s Grosvenor House Hotel and two hotels in New York, increasing the likelihood that the trophy properties will be acquired by the UK’s richest men, the Reuben brothers.
The QIA’s withdrawal, confirmed by three people briefed on the situation, prolongs the troubles of India’s Sahara Group, which owns the Grosvenor House and majority stakes in New York’s Plaza and Dream Downtown hotels……………………………………..Full Article: Source

Norway’s shopping spree for North American real estate continues

Posted on 23 September 2016 by VRS  |  Email |Print

The Norwegian Sovereign Wealth fund is pursuing a strategy to increase its portfolio weight of real estate assets to about 5% within the foreseeable future - planning to increase the weight by 1% per year until 2020, with a corresponding decrease in bond holdings.
So far most of the real estate investments (outside of Europe) have been in North America, exploding in recent years and comprising billions of dollars annually. The latest in the surge was announced today in Washington DC…………………………………Full Article: Source

World’s largest sovereign fund acquires $453 million worth of San Francisco real estate

Posted on 16 September 2016 by VRS  |  Email |Print

Norway’s Norges Bank Real Estate Management, known for having the world’s largest sovereign fund at $888 billion, is in the midst of acquiring $453 million worth of San Francisco real estate. It’s investing the money in two office properties in the city, and will ultimately have a 44 percent common equity interest in the buildings.
The two properties, 100 First Street and 303 Second Street, are both in San Francisco’s SOMA neighborhood. The former is a 27-story high-rise with graduated tiers and a pale marble facade, while the latter is a set of twin nine- and 10-story buildings — it features an outdoor plaza, reflecting pool and terraced seating………………………………………..Full Article: Source

Brexit Triggered Fastest Property Deal for Biggest Wealth Fund

Posted on 14 September 2016 by VRS  |  Email |Print

Norway’s $875 billion sovereign wealth fund, the world’s biggest, pounced on London’s Oxford Street after U.K. voters decided to leave the European Union. Just about two weeks after Britons unexpectedly voted to leave the EU at the end of June, the fund snapped up a retail and office property for 124 million pounds ($164 million) from the Aberdeen U.K. Property Fund.
The deal “may have been the fastest transaction we’ve ever made,” Karsten Kallevig, chief executive officer of Norges Bank Real Estate Management, said in an interview in Oslo on Tuesday. The fund got a “significant discount” because the seller had liquidity pressure, he said………………………………………..Full Article: Source

BlackRock’s McKenna Said to Start Merger-Arbitrage Hedge Fund

Posted on 14 September 2016 by VRS  |  Email |Print

BlackRock Inc. has started a hedge fund with a $200 million investment from New Zealand’s sovereign-wealth fund that will seek to profit from bets on companies involved in takeovers.
The merger-arbitrage fund began trading this month and is run by former Harvard money manager Mark McKenna, who oversees the firm’s global event-driven strategy aimed at benefiting from takeovers, divestitures and management changes, according to a person with knowledge of the matter………………………………………..Full Article: Source

ADIC Said to Revive $1.5 Billion Private Equity Portfolio Sale

Posted on 14 September 2016 by VRS  |  Email |Print

The Abu Dhabi Investment Council revived plans to sell $1.5 billion of private equity fund stakes, people with knowledge of the matter said. ADIC, which invests in asset classes including private equity, infrastructure and hedge funds, is working with an adviser to find a buyer for the assets, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The assets are primarily from European and U.S. funds, the people said.
The government-controlled fund manager had previously been in talks to sell the portfolio to French asset manager Ardian before pulling the deal last year as valuations of funds in the secondary market continued to appreciate………………………………………..Full Article: Source

GIC to buy P3?

Posted on 13 September 2016 by VRS  |  Email |Print

GIC, the sovereign wealth fund of Singapore, is rumoured to be in advanced negotiations to buy P3, reports Ziarul Financiar quoting market sources. A formal announcement could be made by the end of the year. Australian group Macquarie is also reported to be interested in purchasing the warehouse developer.
P3 was acquired by TPG Real Estate and Ivanhoe Cambridge in 2013. P3’s asset base now comprises 163 warehouses, totaling 3.3 mln sqm of space across nine countries as well as a land bank with zoning for more than 1.4 mln sqm of potential development. Ziarul Financiar estimates the company’s value at around EUR 3 bln………………………………………..Full Article: Source

ADIC Said to Revive $1.5 Billion Private Equity Portfolio Sale

Posted on 13 September 2016 by VRS  |  Email |Print

The Abu Dhabi Investment Council revived plans to sell $1.5 billion of private equity fund stakes, people with knowledge of the matter said. ADIC, which invests in asset classes including private equity, infrastructure and hedge funds, is working with an adviser to find a buyer for the assets, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The assets are primarily from European and U.S. funds, the people said.
The government-controlled fund manager had previously been in talks to sell the portfolio to French asset manager Ardian before pulling the deal last year as valuations of funds in the secondary market continued to appreciate. ADIC is restarting the sale process for portfolio management reasons, one person said………………………………………..Full Article: Source

China Sovereign Fund Eyes Asian Hedge Funds to Boost Returns

Posted on 12 September 2016 by VRS  |  Email |Print

China’s $814 billion sovereign wealth fund may increase investments in hedge funds in Asia, betting they can beat rivals trading in developed markets. Hedge fund managers face fewer competitors in Asia, where markets are less efficient and mature than in the U.S. and Europe, said Roslyn Zhang, managing director of fixed income and absolute-return investments at China Investment Corp.
Money will probably be allocated to the funds in the next six to 12 months, she said. “Over the last few years we’ve seen the quality of talent improve a lot,” Zhang said………………………………………..Full Article: Source

DLF To Invest Rs 500 Crore On Developing IT Park In Chennai

Posted on 12 September 2016 by VRS  |  Email |Print

Realty major DLF will invest about Rs 500 crore to develop an IT Park in Chennai as the commercial real estate market has picked up in major cities. Earlier, sources had said that Blackstone, Singapore’s sovereign wealth fund GIC and Abu Dhabi Investment Authority are among shortlisted investors.
“We received multiple bids from sovereign funds and global private equity firms. We have shortlisted few,” DLF senior executive director (finance) Saurabh Chawla had said recently………………………………………..Full Article: Source

RMZ, Qatar Fund plan 2nd real estate JV

Posted on 08 September 2016 by VRS  |  Email |Print

Bengaluru-based commercial real estate developer RMZ Corp is in the process of forming a second joint venture with Qatar Investment Authority (QIA), sovereign wealth fund of Qatar, to buy development assets across top cities in the country. The new commercial platform will see QIA more than double its investment made through RMZ. In 2013, it had invested $300 million, or 1,800 crore.
“QIA has committed to give money, and it will be based on project requirements,” a person familiar with RMZ plans said. “The earlier platform with QIA invested in investment assets while the new one will deploy money in developmental assets.”……………………………………….Full Article: Source

RMZ to float second JV with Qatar Investment Authority

Posted on 07 September 2016 by VRS  |  Email |Print

Bengaluru-based commercial real estate developer RMZ Corp is in the process of forming a second joint venture with Qatar Investment Authority (QIA), sovereign wealth fund of Qatar, to buy development assets across top cities in the country.
The new commercial platform will see QIA more than double its investment made through RMZ. In 2013, it had invested $300 million, or Rs 1,800 crore. “QIA has committed to give money, and it will be based on project requirements,” a person familiar with RMZ plans said. “The earlier platform with QIA invested in investment assets while the new one will deploy money in developmental assets.” ……………………………………….Full Article: Source

Future Fund looks to venture in private markets for growth

Posted on 05 September 2016 by VRS  |  Email |Print

The Future Fund is looking to venture and early-stage opportunities in its private equity markets for growth, as it sees risk and fragility in listed markets. “Listed equities, to put it politely, were lacklustre over the last financial year. The world index lost 2.7 per cent in global currency terms, the local market just squeezed into positive territory with a 0.2 per cent return,” said David Neal, chief executive of the Future Fund.
He added the source of the $123 billion sovereign wealth fund’s 4.8 per cent return for the 2015/16 financial year came from its private markets portfolio………………………………………..Full Article: Source

Middle Eastern sovereign funds spend less on overseas commercial property investments

Posted on 05 September 2016 by VRS  |  Email |Print

The panic in financial markets, which followed Britain’s shock Brexit vote and a slowdown in the Chinese economy, has prompted Middle Eastern sovereign wealth funds to rein in their spending on high-profile overseas office blocks and hotels.
The amount of money being spent by Middle Eastern sovereign wealth funds and big-name investors on commercial property in the United Kingdom, Eur­ope, Asia and the United States plummeted in the first half of this year, new research shows………………………………………..Full Article: Source

Future Fund puts private equity on notice over fees

Posted on 02 September 2016 by VRS  |  Email |Print

The Future Fund’s chief investment officer has warned the private equity industry that the days of charging generous performance fees for returns based on “luck or lazy use of leverage” have gone forever.
Raphael Arndt told the AVCAL Alpha Conference in Melbourne that true value creation strategies were now more important than ever for the $123 billion sovereign wealth fund. “Ensure that you are focused on true value-add, are flexible with fees and terms and, most of all, operate in a transparent way,” Arndt said………………………………………..Full Article: Source

Future Fund says private equity’s ‘lucky, ‘lazy’ days are ‘gone forever’

Posted on 02 September 2016 by VRS  |  Email |Print

The investment chief of Australia’s sovereign wealth fund has told the local private equity industry he wants to allocate more capital to it but first needs to see better transparency on fees.
Future Fund chief investment officer Raphael Arndt said there had “never been a more important time” for long-term investors to have a meaningful exposure to private equity, as he called on the local industry to do more to make its fees and terms “world class”. “The role of private equity, and in particular venture capital, in our portfolio is more important now than it has ever been.” ……………………………………….Full Article: Source

Russian state fund aims to take part in Bashneft privatisation

Posted on 02 September 2016 by VRS  |  Email |Print

The Russian Direct Investment Fund (RDIF) is aiming to take part in the privatisation of oil producer Bashneft, Kirill Dmitriev, head of the fund, said on Thursday. “We certainly will participate in Bashneft (privatisation),” he told reporters. The Russian government plans to sell a 50.08 percent stake in Bashneft. The stake has been valued at around 300 billion roubles ($4.6 billion).
The RDIF plans to look for investors and bid itself for one tenth of the Bashneft stake being offered, Dmitriev said. He compared the fund’s plans with a model previosly used when it took part in the privatisation of diamond producer Alrosa earlier this year………………………………………..Full Article: Source

Norway fund pays $453 mln for stakes in San Francisco office buildings

Posted on 01 September 2016 by VRS  |  Email |Print

Norway’s $888 billion sovereign wealth fund, the world’s biggest, has bought stakes worth $453 million in two office properties in San Francisco, the fund’s manager said on Wednesday.
Norges Bank Real Estate Management said it was buying the stakes, of 44 percent, in companies owned by Kilroy Realty Corporation. Kilroy, which previously fully owned the properties, will keep 56 percent, it added………………………………………..Full Article: Source

Norway’s sovereign wealth fund just invested half a billion in San Francisco real estate, as part of its massive surge in North America

Posted on 01 September 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund just invested $453 million in a 44% stake in two office properties in San Francisco, owned by Kilroy Realty Corporation, which retains a majority stake of 56%, Reuters reports.
This is the fund’s latest in a surge of real estate investments in North America. Since the fund was given mandate to invest in real estate outside of Europe in 2013, 431 investments have been made in North America, totalling NOK 88,6 billion, or $10 billion………………………………………..Full Article: Source

Private Equity Firms Struck Hushed Deals With Foreign Funds

Posted on 31 August 2016 by VRS  |  Email |Print

Singapore’s sovereign wealth fund and Canada pension plan were main beneficiaries. Some U.S. private equity firms are courting their biggest and savviest investors with privileged access to special fee-saving deals without telling other investors, according to people involved in buyout firms’ fundraising.
The U.S. Securities and Exchange Commission (SEC) has signaled its interest in overseeing such deals after fining several private equity firms in recent months for improper disclosure of fees………………………………………Full Article: Source

Empire State Building: Now Partially Owned by Qatar

Posted on 26 August 2016 by VRS  |  Email |Print

Qatar’s sovereign wealth fund has made an iconic purchase in America — a stake in the company that owns New York’s Empire State Building. The $622-million purchase by the Qatar Investment Authority comes as the Doha fund increases its investments in the U.S. as the small country on the Arabian Peninsula tries to cope with low global oil and gas prices.
The Empire State Realty Trust Inc., which manages the 102-story, 1,454-foot (443-meter) -tall building, announced the Qatari purchase late Tuesday, saying the fund would gain a 9.9-percent stake in the company. The trust owns a total of 14 office properties and six retail properties around the New York area………………………………………..Full Article: Source

Qatar’s Empire State Building investment is rare move for foreign fund

Posted on 26 August 2016 by VRS  |  Email |Print

The Qatar Investment Authority’s acquisition of a 9.9-percent stake in Empire State Realty Trust, announced Wednesday, is an unusual move for a sovereign wealth fund. But it offers several advantages, analysts say. “It is relatively rare to see [sovereign wealth funds] buy a stock position,” said John Guinee, an analyst at Stifel. Far more often, they buy direct stakes in buildings.
When Norway’s sovereign wealth fund Norges Bank Investment Management invested with publicly traded Boston Properties last year, for example, it didn’t buy its stocks. Instead, it bought a 45-percent joint venture interest in the Citigroup Center at 601 Lexington Avenue for $725 million. In 2013, it had bought a 45-percent stake in Boston Properties’ 7 Times Square for $684 million………………………………………..Full Article: Source

Qatar Wealth Fund Buys 9.9% Stake in Empire State Building Owner

Posted on 24 August 2016 by VRS  |  Email |Print

Qatar Investment Authority, the sovereign wealth fund of the Middle Eastern country, bought a 9.9 percent interest in Empire State Realty Trust, owner of New York’s Empire State Building.
The fund purchased 29.6 million newly issued Class A common shares at $21 each, and will have a 9.9 percent economic and voting interest in the real estate investment trust. The acquisition translates into a new $622 million investment in Empire State Realty, the company said in a statement Tuesday………………………………………..Full Article: Source

U.K. Property Values? They Are Anyone’s Guess

Posted on 24 August 2016 by VRS  |  Email |Print

Most agree commercial real estate is down since Brexit, but estimates differ over how much. Property broker CBRE estimated that property values across the U.K. fell 3.3% in July. Data-firm MSCI Inc. said values fell 2.8%.
Norway’s sovereign-wealth fund said it took 5% off the value of its U.K. property portfolio because of Brexit. Aberdeen Asset Management, which operates a U.K. property fund, at first knocked its value down 17% to reflect rapid sales but more recently said it is off 5%………………………………………..Full Article: Source

Norway’s oil fund pares UK property portfolio after Brexit vote

Posted on 19 August 2016 by VRS  |  Email |Print

Norway’s $893-billion sovereign wealth fund cut the value of its UK property portfolio by 5 percent after Britain’s vote to leave the EU, and is concerned at the prospect that Brexit might limit free movement of goods, services and people, it said on Wednesday.
The world’s largest sovereign fund is one of Britain’s biggest foreign investors, owning shares in most top UK companies and holding $11 billion in government bonds. It co-owns Regent Street, one of London’s premier shopping streets. Conversely, Britain is crucial to the fund as its second-largest investment location after the United States, accounting for 10.2 percent of the fund’s value at end-2015………………………………………..Full Article: Source

Sovereign Funds Hold Steady on Private Equity Allocation

Posted on 19 August 2016 by VRS  |  Email |Print

Traditionally, public pensions have been a reliant source of capital for private equity deals. However, sovereign wealth funds continue to gain ground in the private equity investor base, as assets steadily grow for the institutional investor class. The total sovereign fund allocation to private equity tepidly increased for the year ended June 30, 2016, for a number of reasons.
First, several wealth funds have been realigning their private equity fund interests, selling some off to secondary buyers (sometimes even other asset owner peers), while continuing to recommit to strategic/geopolitical private equity funds, push capital into separate accounts, augment co-investment activity or allocate to top-quartile funds………………………………………..Full Article: Source

Norway’s sovereign fund cuts value of UK property portfolio after Brexit

Posted on 18 August 2016 by VRS  |  Email |Print

World’s largest sovereign fund reduces portfolio value by 5% saying there are question marks as to what EU vote means. Norway’s $893bn (£687bn) sovereign wealth fund has cut the value of its UK property portfolio by 5% after Britain’s vote to leave the EU.
The world’s largest sovereign fund is one of Britain’s biggest foreign investors, owning shares in most top UK companies and $11bn in government bonds. It co-owns Regent Street, one of London’s premier shopping streets………………………………………..Full Article: Source

Property market fears as wealth fund slashes value of UK portfolio after Brexit

Posted on 18 August 2016 by VRS  |  Email |Print

The world’s biggest sovereign wealth fund has added to fears over Britain’s property market as it slashed the value of its UK portfolio after the Brexit vote. Norway’s 7.18 trillion kroner (£669 billion) Global Government Pension Fund said it had cut the value of its UK property portfolio by 5% due to ” increased volatility and uncertainty” in the sector.
Almost a quarter of its 221 billion Norwegian kroner (£21 billion) property portfolio is invested in the UK. The fund said its external valuers could not update property valuations to take account of the Brexit vote impact due to a shortage of data………………………………………..Full Article: Source

Singapore fund buys most of Denver manufactured-home communities firm

Posted on 17 August 2016 by VRS  |  Email |Print

A Singapore sovereign wealth fund is buying most of a Denver company that owns manufactured-home communities. Yes! Communities said GIC, formerly known as Government of Singapore Investment Corporation, is buying 71 percent of the Denver company that owns and manages 178 manufactured-home communities in 17 states.
Terms of the deal weren’t disclosed but in June, the Wall Street Journal estimated the total value of Yes! Communities at $2 billion. Yes! Communities management and existing owner Stockbridge Capital Group LLC of San Francisco will continue to own the remaining 29 percent………………………………………..Full Article: Source

GIC among investors buying 71 percent of US property firm, likely valuing it above $2 billion

Posted on 17 August 2016 by VRS  |  Email |Print

Singapore’s sovereign-wealth fund GIC is among two investors who have bought a 71 percent stake in Denver-based Yes Communities, an owner of manufactured housing estates in the United States, the U.S. firm said. YES is a portfolio company of real estate funds managed by Stockbridge Capital Group.
The deal would lead to consolidation of YES’s three home community portfolios into a single entity, whose principal owner and sole general partner would be Yes Communities, a newly formed real estate investment trust, YES said in a statement………………………………………..Full Article: Source

Old Mutual, SWF to invest in Nigerian real estate, agriculture

Posted on 15 August 2016 by VRS  |  Email |Print

Anglo-South African financial services firm Old Mutual and Nigeria’s sovereign wealth fund on Friday signed agreements to set up two funds to invest in real estate and agriculture in Africa’s most populous nation. Old Mutual and Nigeria Sovereign Investment Authority (NSIA) said they would jointly raise a $500 million fund to invest in real estate and another $200 million to spend on agriculture projects in Nigeria.
The West African nation is in the middle of its worst crisis in decades as a slump in oil revenues hammers public finances and the naira. Gross domestic product shrank in the first quarter and the central bank governor has said a recession is likely………………………………………..Full Article: Source

Qatar fund may back RMZ scion’s co-working startup

Posted on 12 August 2016 by VRS  |  Email |Print

A young scion at one of India’s largest commercial space developers is challenging WeWork, a heavily funded US startup focused on technology-enabled shared office spaces and which is finalizing its entry into the country.
The 26-year-old Sidharth Menda of Bengaluru-headquartered RMZ Corp is starting up a community workspace venture for millennials, called CoWrks, with likely financial backing from Middle East sovereign wealth manager Qatar Investment Authority (QIA). QIA has been a large investor in RMZ’s office space portfolio, topping 20 million sqft and has supported growth through acquisitions………………………………………..Full Article: Source

Asian investors relocate to global real estate in search of sustainable returns

Posted on 12 August 2016 by VRS  |  Email |Print

In its latest annual report, released in July, China Investment Corporation (CIC) highlights how important global real estate has become to the sovereign wealth fund’s investment strategy. “For long-term asset investment, we ramped up investments in assets that generate stable returns such as real estate and infrastructure,” notes CIC.
To date, it says, that has translated into more than 40 real estate investments across North America, Europe, Asia and Oceania. According to news reports, CIC – one of the world’s largest asset owners – has invested more than US$5.5 billion in property developments since 2013………………………………………..Full Article: Source

Cerberus’ new Europe property fund may attract over $370 mn from Korean investors

Posted on 12 August 2016 by VRS  |  Email |Print

National Pension Service (NPS), Korea Investment Corporation (KIC) and a South Korean insurer are considering putting a combined $370 million into a real estate fund that Cerberus Capital Management is launching to buy distressed assets in Europe, and other domestic institutions are mulling participation in the fund, pension fund and investment banking sources said on August 10.
Cerberus, a U.S. private equity firm specializing in distressed asset investments, is aiming to raise a total of $1.5 billion in the fund, the fourth of its kind, amid expectations that tightened banking regulations under the Basel III and strict asset quality reviews by the European Central Bank will continue to prod European banks to shed non-core assets to bolster their capital base………………………………………..Full Article: Source

Korean Investment Corporation to take stake in Melbourne office complex

Posted on 09 August 2016 by VRS  |  Email |Print

The South Korean sovereign wealth fund, the Korean Investment Corporation (KIC), is believed to be part of a group acquiring a half stake in a Melbourne office complex for AUD289m (€188m).
The vendor, Dexus Property Group, has given the group an option to take the remaining 50% for the same price – valuing Southgate Complex, on Melbourne’s Southbank, at AUD578m. Darren Steinberg, Dexus chief executive, told IPE Real Estate: “This was the first tranche of the sale. Over the next few months, we will sell the remaining 50% in a second tranche………………………………………..Full Article: Source

Future Fund adds Kiskadee to alternative risk premia manager roster

Posted on 01 August 2016 by VRS  |  Email |Print

The Future Fund, one of Australia’s sovereign wealth investment funds, has allocated capital to a second ILS fund manager by selecting Kiskadee Investment Management, the insurance-linked securities (ILS) fund and reinsurance-linked investment arm of re/insurer Hiscox.
The Future Fund is a sovereign wealth fund designed to provide the Australian government with financial support by offering unfunded superannuation liabilities, capitalised to the tune of AUD$117.3 billion, as at March 31st 2016………………………………………..Full Article: Source

New Mexico SIC sets aside $193m for non-core real estate

Posted on 29 July 2016 by VRS  |  Email |Print

The New Mexico State Investment Council plans to invest $193m (€174.5m) in non-core real estate in 2017. The investor’s annual investment plan was approved at a board meeting this week.
New Mexico State said it had already committed sufficient capital to core open-ended funds and was looking to round out its portfolio with value-added funds. The sovereign wealth fund is looking to invest the capital on a global basis………………………………………..Full Article: Source

Alaska’s $53 Billion Permanent Pool to Exit Funds of Hedge Funds

Posted on 29 July 2016 by VRS  |  Email |Print

Alaska’s $53 billion wealth fund plans to exit all of its funds of hedge funds and will instead make investment decisions in-house. Alaska Permanent Fund Corp. plans to pull all of the $2 billion it has invested in liquid assets across Crestline Investors, Mariner Investment Group and Lazard Asset Management, according to Marcus Frampton, its director of private markets.
Alaska will instead rely on its own five-person alternatives team to select hedge funds. “We’ve decided to move to a 100 percent direct program,” Frampton said……………………………………….Full Article: Source

GIC bids for stake in Indian commercial developer

Posted on 29 July 2016 by VRS  |  Email |Print

The world’s biggest alternative investment manager, and Singapore’s sovereign wealth fund look at a $1 billion India real estate deal, while Wanda makes progress on its Hong Kong privatisation plan, while spending some pocket millions on a new web platform. Read on for all these stories and more.
Blackstone, GIC of Singapore and a consortium of sovereign wealth funds from Abu Dhabi and Qatar have advanced in the process to buy a $1-billion stake in the commercial property unit of DLF, people directly familiar with the matter said………………………………………..Full Article: Source

Sovereign wealth funds to become largest private equity allocator

Posted on 27 July 2016 by VRS  |  Email |Print

Sovereign wealth funds could overtake public pension funds as the most significant source of private equity capital in the next five years, David Rubenstein, co-founder and co-chief executive officer of Carlyle Group told attendees at the Private Equity Exclusive conference in Chicago on Monday.
U.S. public pension funds have historically been the biggest source of capital for private equity firms and today account for 30% to 35% of capital, Mr. Rubenstein. However, sovereign wealth fund assets are growing rapidly, expected to increase to $9 trillion by 2020 from $1 trillion in 2004, Mr. Rubenstein said, citing PricewaterhouseCoopers report on asset management in 2020………………………………………..Full Article: Source

Swiss seize Monet, van Gogh works amid U.S. probe of Malaysian fund

Posted on 25 July 2016 by VRS  |  Email |Print

Malaysian Prime Minister Najib Razak said on Thursday judgment should be withheld until all the facts are known after the U.S. government filed lawsuits seeking to seize $1-billion (U.S.) in assets bought with money stolen from a state fund he oversaw.
The U.S. Justice Department lawsuits filed in a federal court on Wednesday did not name Najib, instead referring to “Malaysian Official 1.” Some of the allegations against this official were the same as those in a Malaysian investigation into a $681-million transfer to the premier’s personal bank account………………………………………..Full Article: Source

Abu Dhabi Investment Authority’s real rate of return stays steady

Posted on 22 July 2016 by VRS  |  Email |Print

Despite volatile conditions that saw equity markets end 2015 little changed from where they began, the Abu Dhabi Investment Authority, or Adia, recorded a creditable performance from an overall portfolio perspective, the world’s leading sovereign wealth fund said.
In its 2015 annual review, Adia said its 20-year annualised rates of return fell to 6.5 per cent in 2015 from 7.4 per cent the year before. The fund’s 30-year rate of return slipped to 7.5 per cent from 8.4 per cent. “This was primarily as a result of strong returns from the mid-1980s and 1990s falling out of the rolling averages over the periods in question.”……………………………………….Full Article: Source

In Properties Targeted in 1MDB Case, a High-End House Tour

Posted on 21 July 2016 by VRS  |  Email |Print

The properties allegedly bought with funds misappropriated from a Malaysian investment fund would make for a stunning house tour of high-end real estate in New York and Los Angeles.
Besides flashy real estate, the U.S. government alleges that money from the fund, known as 1Malaysia Development Bhd. or 1MDB, was used to buy a $35 million private jet and a stake in EMI Music Publishing………………………………………..Full Article: Source

Abu Dhabi Investment Authority’s real rate of return stays steady

Posted on 21 July 2016 by VRS  |  Email |Print

Despite volatile conditions that saw equity markets end 2015 little changed from where they began, the Abu Dhabi Investment Authority, or Adia, recorded a creditable performance from an overall portfolio perspective, the world’s leading sovereign wealth fund said.
Now in its 40th year, Adia invests across more than two dozen asset classes globally. It does not disclose the total size of its assets, but the US-based Sovereign Wealth Fund Institute, which tracks the industry, estimates them at $792 billion………………………………………..Full Article: Source

Aberdeen’s unfrozen property fund sells London asset to Norges Bank

Posted on 20 July 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund has acquired a prime London asset, capitalising on liquidity pressures facing open-ended property funds in the UK. Aberdeen Asset Management has sold a 59,000sqft retail and office building on Oxford Street from a fund that was recently closed to redemptions.
Norges Bank Real Estate Investment Management paid £124m (€149m) for 355-361 Oxford Street, known as Sedley Place, in London’s West End………………………………………..Full Article: Source

Investors Go Bargain-Hunting for U.K. Property After Brexit Vote

Posted on 20 July 2016 by VRS  |  Email |Print

Global investors are on the hunt for U.K. property bargains, expecting that Brexit-fueled economic turmoil could weaken real-estate values. The drop in the value of sterling has only increased the appeal.
Norway’s sovereign wealth fund announced it bought a retail and office property on Oxford Street, one of London’s main shopping destinations from Aberdeen Asset Management for £124 million ($164.3 million). Aberdeen, which resumed trading in its U.K. property fund last week, declined to comment………………………………………..Full Article: Source

Qatar Investment Authority’s purchase of Asia Square Tower One

Posted on 18 July 2016 by VRS  |  Email |Print

The recent acquisition of the 43-storey Asia Square Tower One by Qatar Investment Authority, a sovereign wealth fund, has provided the flagging Singapore real estate market with a much-needed shot in the arm.
Asia Square Tower One was sold by BlackRock, the world’s largest asset manager, for US$2.5 billion ($3.4 billion), a record for Singapore. According to reports, the effective selling price of $2,700 per square foot was lower than what BlackRock had initially hoped to get………………………………………..Full Article: Source

Temasek not averse to distressed assets in India

Posted on 15 July 2016 by VRS  |  Email |Print

Temasek Holdings is open to investing in distressed assets in India either directly or through an asset reconstruction firm, a senior executive has said. Ravi Lambah, however, added that the company has no firm plans to make such investments so far.
“We are an equity-only investor. So, if there is a business that could be a non-performing asset… which is outsourced by a bank to an asset reconstruction firm and that needed an equity infusion, we would look at it just as any other investment opportunity,” the head for telecom, media and technology at Temasek International said………………………………………..Full Article: Source

Temasek plans to invest in Indian real estate

Posted on 13 July 2016 by VRS  |  Email |Print

Temasek Holdings is for the first time considering investment in real estate as an asset class in India. Last year, private equity-owned real estate funds invested $5 billion in India, which is the highest since the 2008 financial crisis, according to investment advisory firm Venture Intelligence.
The Singapore government-owned company is one of the largest investors in India, with a net investment portfolio of about $9 billion, or five per cent of its $179-billion global portfolio………………………………………..Full Article: Source

Investors go alternative

Posted on 12 July 2016 by VRS  |  Email |Print

The Global Alternatives Survey, which covers ten asset classes and seven investor types, shows that of the top 100 alternative investment managers, real estate managers have the largest share of assets (34% and over $1.2 trillion), followed by hedge funds (21% and $755bn), private equity fund managers (18% and $640bn), private equity funds of funds (PEFoFs) (12% and $420bn), funds of hedge funds (FoHFs) (6% and $222bn), infrastructure (5%) and illiquid credit (5%).
Achieving this would have a positive knock-on effect for managers of attracting assets from other investors, such as insurers and sovereign wealth funds, wanting to make the most of market volatility and associated alpha opportunities; particularly given the current lack of clear beta opportunities.”……………………………………….Full Article: Source

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