Joining Trend, SWFs Push into Shareholder Activism to Boost Returns

January 16, 2015 by Nate Hardcastle and Rachel Monroe

  • Print
  • Please login
Sovereign wealth funds are wading into the contentious arena of activist investing, campaigning for better corporate governance and launching hostile takeovers while pouring money into the coffers of hedge funds that ply the controversial strategy. Leo de Bever, CEO of Alberta Investment Management Corp. (AIMCo), smelled opportunity in April 2009. Precision Drilling Corp., a Calgary-based oil field services company, had taken on an unsecured bridge loan the previous year to finance its purchase of a rival driller the previous. With credit markets frozen, Precision couldn't replace the loan, which carried a 17 percent interest rate, with cheaper debt. The company turned to de Bever, who oversees more than C$75 billion ($63 billion) for 28 pensions and endowments, including the Alberta Heritage Savings Trust Fund, a sovereign wealth vehicle. AIMCo invested C$380 million in the driller, including notes, equity and warrants. The Alberta fund took a seat on Precision's…

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: