SOVEREIGN WEALTH FUND READY HUGE WAR CHEST FOR ACQUISITIONS
Some of the world’s largest sovereign wealth funds are putting in investments into new opportunities in the time of the pandemic, buying into listed companies.
According to the Sovereign Wealth Fund Institute, which charts the investment plays of funds, Saudi Arabia’s Public Investment Fund (PIF) and Abu Dhabi’s Mubadala Investment Company are said to be looking into entertainment, healthcare, logistics, and technology.
PIF has made investments into Carnival Cruise Line, that include a US$ 4 billion in senior secured notes due in 2023 at 11.5% interest convertible notes of US$ 1.75 billion also due in 2023 went for 5.75%.
A share dilution brought in another US$ 625 million for Carnival which is based out of Doral, Florida .It is eyeing to resume cruises by August 2020.
The PIF also allotted US $320 million for stakes in oil companies Shell, Equinor, Total S.A., and Eni Spa. Another US$ 500 million went to ticket-seller Live Nation Entertainment.
Mubadala, with US$ 230 billion, expects to unleash capital when the timing is favorable. Mubadala has recently placed a small amount in medical biller WellPay.
Its investment in Virgin Galactic also appears to be paying off, with the most recent successful test flight of the VSS Unity reported on May 4, 2020. Test flights have been ongoing since 2016.
Another investment it made was in listed company Inseego Corporation, which is a provider of software-as-a-service and solutions for the Internet of Things – attempting to benefit from a possible 5-G future.
Meanwhile, Norway Government Pension Fund Global made some heavy bets in companies such as Fitbit, Royal Dutch Shell, BHP Billiton, and Grupo Aeroportuario del Centro Norte S.A.B. de C.V.