- 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
Direct investments are the preferred vehicle for large institutional investors to have control over their portfolio investments. This chapter studies the deal structure of direct investments by sovereign wealth funds (SWFs) in private equity transactions. Its analyses of direct investments are based on data from Global Corporate Venturing. It finds that SWFs shift from investing in private equity funds to originating and co-investing together with private equity funds in deals. The choice for co-investment affects deal size, risk-bearing, fees and returns. Overall, results of research conducted for this chapter show the strong interest of SWFs in direct investments in developed markets.
Joseph A. McCahery is Professor of International Economic Law at Tilburg University Law School and TILEC. He was previously Professor of Corporate Governance and Innovation at the University of Amsterdam and Director of the Financial Markets and Regulation MSc, and Finance and Law LLM program at Duisenberg School of Finance. He has held visiting appointments at Auckland University, Columbia University, Leiden University, Rotterdam School of Management, Solvay Business School, and the University of Pennsylvania. His research interest areas include: banking regulation and supervision, corporate finance, financial market regulation, and corporate law and governance. He has published widely in the top finance and law journals and is author and editor of more than ten books, including; Law, Economics and Organization of Alliances and Joint Ventures (Cambridge University Press, forthcoming); Institutional Investor Activism: Hedge Funds and Private Equity, Economics and Regulation (Oxford University Press, 2015); and Corporate Governance of Non-listed Companies (Oxford University Press, 2008). He has served as a consultant to publicly traded firms, governmental agencies, investment companies, and law firms.
F. Alexander de Roode is Researcher at Robeco’s Investment Research Department where he develops investment portfolio allocation strategies using quantitative methods. In addition, he participates in the design of retirement solutions for institutions and individuals. His other research interests include alternative asset classes, model ↵uncertainty, and corporate finance. He holds a PhD in Financial Econometrics and an LLM in International Business Law from Tilburg University in the Netherlands.
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