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A new funding source for alternative managers: Sovereign wealth funds

In these tough times, many hedge fund managers may have been wandering around for greener pastures for new capital, but hitting only barren lands.
 
No doubt, times are even tougher now than before when it comes to raising money especially from ultra-high-net-worth family offices and individuals. Difficult it may be, but no, the faucet has not dried up just yet.

How do we know that? The Capital Express (www.TheCapitalExpress.com) reported that a half dozen single family offices - from Switzerland to Canada to Israel - made investments in various public equities during the past week alone. There is an ever larger source to tap into.

Remember the sovereign wealth funds? The state-owned investment giants with hundreds of billions of dollars? China investment Corp., Kuwait Investment Authority, Qatar Investment Authority and Singapore Government Investment Corp., are  among nearly 100 of them worldwide. Many of them still display a healthy appetite for alternative investments.

Qatari Diar - Real Estate Investment Company, a unit of Qatar Investment Authority, has an estimated $49 billion in assets under  management. Qatar Investment Authority's investments range from "listed securities, property, alternative assets and private equity."

It has already invested with hedge funds, including Chelsfield Partners in Britain and Fortress Investment Group in the United States. Qatar will invest $130 billion over the next six years, with $65 billion going to energy-related projects alone.

As for China Investment Corp., its "alternative investments include hedge funds, private equity, commodities and real estate." Just on July 3, it agreed to invest $1.5 billion Teck Resources Ltd, a Canadian energy concern.

Felix Chee, an adviser to China's $200 billion sovereign wealth fund, said last month CIC aims to make investments in hedge funds. Kuwait Investment Authority has a three-member dedicated team for alternatives.

Want to contact them?
Executive director Farouq A. Bastaki (965-2243 7661, email:did_director@kia.gov.kw).
Ahmad Al-Bader heads real estate investments (965-2248 5862, email:Ahmadbdr@kia.gov.kw)
Salah Al-Muraiki manages hedge funds investments (965-2248 5801, email:Salahm@kia.gov.kw).

Source: The Capital Express (www.TheCapitalExpress.com)