I know the track record is not promising. But, perhaps, we will be that lucky for their realization that nothing less than the integrity of the Capitalistic system is at stake is growing by the day. We certainly cannot trust businesses to avoid SWF owning tyrants the rope with which to hang them. They, of course, are sure they can outsmart those “darn foreigners!” After all, Blackstone has lost value:
Apax Partners is exploring the possible sale of an equity stake to a sovereign fund in Asia or the Middle East, amid signs that European private equity firms are chasing partnerships similar to those recently signed by US rivals Blackstone and Carlyle Group. . . .Selling stakes to sovereign wealth funds has become a popular way for US buy-out groups to cash in on their booming businesses while expanding their influence in new markets. Carlyle last week agreed to sell a 7.5 per cent stake to an arm of Abu Dhabi’s government.
Dealmakers in Asia have reported a flood of visitors from European private equity firms in recent weeks, with many seeking to test whether deep-pocketed sovereign funds in countries such as China and Singapore are prepared to make further investments in private equity firms.
All this has been making European economic officials appropriately nervous:
Sovereign wealth funds’ investments will be restricted in Europe unless they are more transparent, says the European Union’s top economic official in what will be seen as a warning to the Asian and Middle East state-run bodies amassing assets worth hundreds of billions of dollars round the world.“We have good reasons to ask these funds to declare what kind of assets they want to invest in, what criteria they apply to decide their investments, and what the distribution of their investments is,” Joaquín Almunia, the EU’s commissioner for economic and monetary affairs, said in an interview. “If they don’t agree to these criteria, we can find good reasons to react in some cases, where these funds try to invest in some strategic sector or try to move towards some specific industries,” Mr Almunia said.
Economists say sovereign wealth funds in China, other Asian countries, the Gulf and elsewhere have amassed total assets of about $2,500bn, an amount so huge that they could in principle buy some of Europe’s largest private-sector companies. . . .The German government is drafting legislation that would cover sectors related to national security, and possibly energy, but not banks, media companies or consumer industries.
Pitiful, I know. The fact that democratic countries such as Norway and Canada have such funds presents a problem in a world where dictatorships like China have been made “normal” and equal members of the WTO thank you Clinton administration which disregarded public opposition to the move! Surprise, surprise, the experts turned out to have been wrong yet again!
Have PoliticalMavens.com delivered to your inbox in a daily digest by clicking here