NRO - Sovereign Wealth Fund investments in SPAC zooms higher in 2020
With 2020 termed as the SPAC-tacular year, sovereign investors and public funds are also making big bets in SPACs beside the institutional investors, Sovereign Wealth Fund Institute transaction data indicated that the SWFs invested more than $1.79B in SPACs in 2020 compared to $68M reported in 2019 and $20M in 2018 and $50M in 2017.Sovereign Wealth Fund are state-owned investment funds that invest in real and financial assets like stocks, bonds, real estate, and precious metals.Utilized for multiple purposes, SWF is highlighted during challenging economic times, as witnessed in the pandemic struck 2020; through investments in SPACs, funds leveraged the uncertain period and supported companies to sail through the economic crisis.Top 10 largest SWF by total assets are listed below; Public Investment Fund ((PIF)) cut its holdings of U.S. equities in Q3 by $3B to $7B mainly by selling stakes in ETFs tracking the real estate and materials sectors.Prince Mohammed, chairman of the
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Sovereign Wealth Fund investments in SPAC zooms higher in 2020