State funds see direct-lending partnerships as growth engine
International Forum of Sovereign Wealth Funds’ Victoria Barbary
Direct lending partnerships between sovereign wealth funds and money managers are becoming a neat way for state-owned pools of capital to gain access to direct lending opportunities and maintain exposure to regions where public markets look expensive.
Committing capital to private markets strategies is nothing new for sovereign wealth funds, but the structure of three deals last year are particularly interesting, sources said.
In September, the $232.2 billion fund Mubadala Investment Co., Abu Dhabi, partnered with Barings LLC to provide financing to European middle-market businesses through the Barings Mubadala Enterprise.
Deep Dive with Lyazzat Borankulova, Managing Director for Strategic Development of Samruk-Kazyna
Posted on 12/16/2020
This is a deep dive interview with Lyazzat Borankulova, Managing Director for Strategic Development of Samruk-Kazyna.
General information about Samruk-Kazyna
The sovereign wealth fund Samruk-Kazyna (the Fund) was founded in 2008 as a holding company by the decree of the President of Kazakhstan and is currently within the Top-20 global sovereign wealth funds in terms of the value of assets under management. The main mission of the Fund is to preserve and create wealth for future generations, with the government of Kazakhstan being the sole shareholder. By the end of 2019, the total assets under management of Samruk-Kazyna stood at over US$ 69 billion, comprising systematically important companies in oil & gas, mining, transportation, power, telecom, postal, chemicals, and real-estate sectors of Kazakhstan, with domestic market share ranging from 26% to 100%. We ar
Sovereign wealth funds have stepped up their private market investments after the coronavirus crisis, but with valuations still high despite a shaky economic backdrop there are questions about the prospects for future returns.
While funds have increased the portion of their outlay in public equities in 2020, private markets still account for the largest chunk of overall investment at $55.5 billion year to date, up from $35 billion last year after a pick-up in deals in the second half, according to the London-based International Forum of Sovereign Wealth Funds.
Current asset prices are still very high despite uncertain economic conditions, raising questions of whether 2020-21 deals will be a good vintage, said Will Jackson-Moore, global private equity, real assets and sovereign funds leader at consultancy PwC.
Sovereign funds step-up dealmaking, but few bargains on offer Tom Arnold Bookmark Please log in to listen to this story. Also available in French and Mandarin. Log In Create Free Account
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Sovereign wealth funds have stepped up their private market investments after the coronavirus crisis, but with valuations barely budging despite a shaky economic backdrop there are questions about the prospects for future returns.
Private markets, which include private equity, venture capital, real estate and infrastructure, have emerged as a cornerstone of sovereign funds’ portfolios in recent years as they scout for higher returns in an ultra-low interest-rate environment.