(via the NYT)
The increased activity comes as other kinds of acquirers have been sidelined by the credit crisis. These funds are state-sponsored investment vehicles and have combined assets of $2 trillion. With that much dry powder, sovereign funds dwarf the formerly booming private equity industry and in some cases, compete directly with it.
The Government of Singapore Investment Corporation has been the most active among the world’s sovereign funds, making its deputy chairman, Tony Tan, a major center of gravity. Wall Street veterans always follow the money, so many of the big-name advisers in New York and London have found themselves traveling the globe playing international matchmaker to these funds.