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Article: The foreign capital influx: the promise and fear of sovereign wealth funds.
- Article from:
- Risk Management
- Article date:
- October 15, 2008
- Author:
CopyrightCOPYRIGHT 2008 Risk Management Society Publishing, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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[ILLUSTRATION OMITTED]
Suppose your company had just suffered one of its worst quarters ill history. Revenue is absent and an influx of cash is much needed. Along comes an investor handling you $5 billion. The investor: Kuwait. Still interested?
This is the world of sovereign wealth investments. It is a world of overflowing nationally held piggy banks looking to invest aggressively in U.S. corporations. And it is one that can no longer be ignored.
To date, nearly 40 sovereign wealth funds exist arm although estimates vary by source, the total assets of the sovereign wealth market come in somewhere around $3 trillion. Moreover, this wealth is ...