Co-Investments of Sovereign Wealth Funds in Private Equity
56 Pages Posted: 10 Dec 2016 Last revised: 16 Dec 2016
There are 2 versions of this paper
Co-Investments of Sovereign Wealth Funds in Private Equity
Co-Investments of Sovereign Wealth Funds in Private Equity
Date Written: December 2016
Abstract
Direct investments are the preferred vehicle for large institutional investors to have control over their portfolio investments. We study the deal structure of direct investments by sovereign wealth funds (SWFs) in private equity transactions. We find 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, our results show the strong interest of SWFs in direct investments in developed markets.
Keywords: Sovereign Wealth Funds, Private Equity, Venture Capital Deals, Financial Markets, Direct Investments
JEL Classification: G32, G15, G38
Suggested Citation: Suggested Citation