| Khazanah's private-equity-style deal with Malaysia Airlines is just the latest in a series of private investments by sovereign wealth funds. Billion-dollar real estate and infrastructure investments made by the rainy-day funds accounted for some of the largest and most valuable deals of 2013, as sovereign funds reached beyond their own borders to snap up private assets. As a result, the world's most iconic skylines, from New York to London and Paris, are increasingly dotted with buildings and bridges owned by foreign countries.
More and more, sovereign wealth funds are using private markets to diversify their portfolios and achieve higher returns by taking on greater risk. Sovereign funds have doubled their allocations to private markets over the past six years,at the same time that other long-term investors - in particular, public pensions- have dialed back risk to meet outstanding liabilities...............................................Full Article: Source |