Sovereign Wealth Funds Compete and Cooperate with Private Equity

November 29, 2013 by Loch Adamson

  • Print
  • Please login
In May 2013, Singapore’s GIC bought into Houston-based enterprise software vendor BMC Software along with U.S. private equity firms Bain Capital, Golden Gate Capital and Insight Venture Partners. The $6.9 billion deal, which closed in September, was the third-largest buyout of the year. Given that GIC, which manages almost $300 billion, is one of the world’s biggest and most experienced sovereign wealth funds, it doesn’t look out of place as a co-investor in the BMC bid. But this transaction shows that sovereign funds and private equity firms are investing in concert, despite potential rivalry between the two high-profile groups. GIC and its peers have beefed up in-house capacity over the past five years so they can make more allocations using their own staff. Sovereign wealth funds have much to gain from working with private equity. They’ve always liked the private equity model because it can help them achieve higher returns…

Sign-up for your free account to read this article

Get Started

Already have an account?
 

Log In Here

Updated Fund Profiles

Our market-leading fund profile library provides unrivalled analysis of more than 90 government and sovereign funds.

Register to read fund profiles

Recent SWF Investments

Search the database of direct investments and mandates by fund, industry and target market to identify past deals that match your requirements. Access over $1 trillion worth of transactions dating back to the 1960s.

Register to explore our data

Latest SWF News

Sovereign Wealth Center makes staying abreast of the most recent government and sovereign fund events easy. Our team undertakes a thorough review of global news feeds every morning and distills salient points.

Register for the latest SWF news
Join the discussion:

To be able to print this content,
you must be a subscriber

For details on your subscription options,
please contact: