- The Oxford Handbook of Sovereign Wealth Funds
- List of Figures
- List of Boxes
- List of Tables
- About the Contributors
- Introducing Sovereign Wealth Funds
- A Financial Force to be Reckoned With?: An Overview of Sovereign Wealth Funds
- Sovereign Development Funds: The Governance and Management of Strategic Investment Institutions
- From Financialization to Vulture Developmentalism: South-North Strategic Sovereign Wealth Fund Investment and the Politics of the “Quadruple Bottom Line”
- Sovereign Wealth Funds and the Resource Curse: Resource Funds and Governance in Resource-Rich Countries
- Sovereign Wealth Funds and the Global Political Economy of Trust and Legitimacy
- Sovereign Wealth Funds and Domestic Political Risk
- Sovereign Wealth Funds and Foreign Policy
- Sovereign Wealth and the Extraterritorial Manipulation of Corporate Conduct: A Multifaceted Paradigm in Transnational Law
- Sovereign Wealth Funds and Private Equity
- Co-Investments of Sovereign Wealth Funds in Private Equity
- The Use of Debt by Sovereign Wealth Funds
- Sovereign Wealth Fund Investment and Firm Volatility
- Sovereign Wealth Funds: Investment Choices and Implications Around the World
- The China Investment Corporation: From Inception to Sideline
- Investment Terms and Level of Control of China’s Sovereign Wealth Fund in its Portfolio Firms
- Strangers Are Not All Danger: Sovereign Wealth Fund Investment in the Energy Industry
- The Norwegian Government Pension Fund Global and the Implications of its Activities for Stakeholders
- Sovereign Wealth Fund Investments and Industry Performance: Evidence from Europe
- Spain and Sovereign Wealth Funds: Four Strategic Governance Types
- Sovereign Wealth Funds in Central and Eastern Europe
- Sovereign Wealth Funds in the Persian Gulf States
- The Australian Future Fund
- Is it Possible to Avoid the St Augustine Syndrome of Fiscal Procrastination?: The Case of Chile
Abstract and Keywords
While the vast majority of SWFs invest in public equity and fixed income vehicles, about half invest in private equity (PE). PE includes several different types of funds investing in companies at different stages of development. Some 78% of SWFs investing in PE invest in buyouts stage funds; 72% in venture capital stage funds; 66% in growth stage funds, while 56% invest in funds investing in companies at the expansion stage. Only 41% have a strategy to invest in distressed company funds while 38% invest in the secondaries funds market. Some 14% of institutional capital raised by PE equity funds in 2015 came from sovereign wealth. This chapter argues that SWF investment in PE funds is more likely to be part of an investment strategy that seeks to maximize returns because investment in PE funds does not afford the SWF direct control over firms bought using PE funds.
Mike Wright is Professor of Entrepreneurship and Founding Director of the Center for Management Buyout Research at Imperial College Business School, Visiting Professor at ETH Zurich, and Fellow of the British Academy. He pioneered research on management buyouts and his current research focuses on entrepreneurial finance (especially private equity, venture capital, business angels and accelerators), as well as entrepreneurial ownership mobility (especially habitual entrepreneurs, returnee entrepreneurs, academic entrepreneurs, and family firms). His books and articles have been cited over 40,000 times (according to Google Scholar). His recent books include The Oxford Handbook of Corporate Governance (Oxford University Press, 2013) and The Habitual Entrepreneur Phenomenon (Routledge, 2016). He is an Editor of Strategic Entrepreneurship Journal, Academy of Management Perspectives and Foundations and Trends in Entrepreneurship. He is a member of the British Venture Capital and Private Equity Association research committee.
Kevin Amess is Associate Professor at Nottingham University Business School. He is a Fellow of the Centre for Management Buyout Research. For over 20 years Kevin has been conducting research on the consequences of Private Equity acquisitions for portfolio firms. His research has contributed widely to greater understanding of the consequences of Private Equity acquisitions on employees, innovation, and performance through journal publications, which include: Entrepreneurship Theory and Practice, European Economic Review, and Journal of Industrial Economics. He reports on, and provides advice for, governmental agencies such as the OECD, the US GAO, and UK government, as well as contributing to media debate.
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