Sovereign wealth fund CIC exits investment in Blackstone Group

Source:Reuters-Global Times Published: 2018/3/14 22:03:41

China's sovereign wealth fund China Investment Corp (CIC) has sold its equity holding in Blackstone Group LP, the US private equity firm said in a filing, exiting from an 11-year-old investment.

The original agreement with Beijing Wonderful Investments, the legal entity set up by CIC to invest in Blackstone, was struck in May 2007, just before the private equity firm's IPO a month later.

The pact allowed CIC to own up to 9.99 percent of the private equity firm. In 2008, CIC raised its stake in Blackstone to 12.5 percent, Reuters reported at that time.

CIC's exit from Blackstone comes amid growing bilateral trade tensions since US President Donald Trump took office just over a year ago.

Trump is seeking to impose tariffs on up to $60 billion of Chinese imports and will target the technology and telecoms sectors, two people who had discussed the issue with the Trump administration said on Tuesday.

"As of February 22, 2018, Beijing Wonderful Investments no longer owned any non-voting common units," Blackstone said in its annual report earlier this month. The company did not give details.

CIC, whose assets had surpassed $800 billion by the end of 2016 thanks mainly to stronger returns from its overseas portfolios, declined to comment when it was contacted by the Global Times on Wednesday.

Despite CIC's stake sale, a Blackstone spokesperson said in a separate emailed statement on Wednesday that the firm continuwes "to expand this important relationship as one of CIC's major asset managers."

Posted in: COMPANIES

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