(1888PressRelease)
December 04, 2007 - A number of the world's top investment banks and hedge funds are looking to sovereign wealth funds to bail them out of financial woes caused by the sub-prime crisis.
Since April 2007, sovereign-wealth funds have invested more than US$37 billion in financial institutions, according to Morgan Stanley estimates.
Citigroup sold a stake to the Abu Dhabi Investment Authority earlier this week, leading to a healthy rally in the price of its shares.
Chinese officials recently claimed the huge China Investment Corp, which handles US$200 billion of forex reserves, will play a "stabilising role" in the global financial markets.
Chinese investors have bought into private-equity firm Blackstone and Barclays. A Dubai sovereign-wealth fund took a stake in hedge fund Och-Ziff.
More deals, including embattled Swiss bank UBS, are in the pipeline, reports the Economist.
With very deep pockets and long-term goals, sovereign wealth funds may not just be expecting financial returns but also looking for expertise in sectors such as the commodities market.
Further analysis of the importance of sovereign wealth funds to the world's financial institutions could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
Copyright and Disclaimer:
Copyright 2007, Aranca. All Rights Reserved.
All the contents of this Site are only for general information or use. They do not constitute advice and should not be relied upon in making (or refraining from making) any decision.
Editors/Journalists/Blogs are invited to request republishing/dissemination rights. All requests to republish Aranca material for distribution should be addressed to:
Aranca Syndication Service at syndicate ( @ ) aranca dot com dot
Tel: +91.22.4005 2219 / +91.22.6725 8115
ARANCA NEWSTRACK – (www.aranca.com)
###
