Welcome to the weekend, everybody. Here are this week’s top stories:
- Do Less: CalPERS announced it would shrink the number of external managers it is using by half. As I argued in an article not more than three weeks ago, in the business of institutional investment the less you do ... the more you do. This is good news.
- Catalytic Capital: The Irish Strategic Investment Fund and the China Investment Corporation are working together to catalyze Ireland’s venture capital industry.
- New SWFs: Egypt will officially launch its new sovereign development fund, “Amlak,” with EGP5 billion this year. The new investment vehicle, which will be owned and operated via the National Investment Bank, will work to diversify and bolster the local economy. It hopes to do this by operating in a highly professional and transparent manner, thereby attracting overseas investors into the local economy.
- Tragic: Why does Wall Street always seem to win? It’s actually fairly simple: Because we ensure that pension funds fail by ridiculously under-resourcing and under paying them. Check this out: “A top investment position for the fund’s $36 billion equities portfolio is currently open ... The salary will be in the region of $100,000, with no opportunity for performance-based bonuses.” How do boards not see the insanity of this?
- Deal Flow I: The Canada Pension Plan apparently beat out a few “name brand” private equity firms for a $12 billion deal to buy GE’s private equity lending arm. (Yes, when a pension is properly resourced it can compete with the private sector.)
- Deal Flow II: Li Ka-shing will sell a $1 billion stake in Hong Kong Electric Company to the Qatar Investment Authority.
- The Dark Side: Andrew Ang is leaving the Ivory Tower for an Imperial Star Destroyer. Good luck to him ... he’s gonna need it.
Have a great weekend!
