Sovereign Funds Join Forces for Strategic Investment | By Natsuko Waki

An increasing number of sovereign wealth funds are working in concert to make joint strategic investments in order to reduce risks and maximize returns, which could provide a stabilizing force in financial markets. State-owned funds from China, Singapore, Malaysia, Korea, Abu Dhabi and Kuwait are among those which have recently signed agreements to form investment partnerships with each other…. “They realize that their level of expertise is not universal and find that obtaining additional expertise via cooperation is a viable option for them. They are sharing risk and enabling access to welcome co-financing,” Alexander Mirtchev, president of Krull Corp., who is also independent director of Kazakhstan’s SWF Samruk-Kazyna, told Reuters. “In the crisis and post-crisis environment, such cooperation allows them to achieve a new level of legitimacy in markets where they have not operated before. SWFs have the potential to stabilize companies they invest in since these funds do not live by quarterly returns.”

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