Filed under: Private equity industry, Activist investing
The Treasury and Congress are still trying to get sovereign funds to concur that their investments in US companies are “financial” and not “political.” According to MarketWatch Treasury Undersecretary for International Affairs David McCormick said the government-controlled funds may raise “legitimate national security concerns,” and may distort markets if not managed properly
Without a shot being fired in anger, one of the largest funds appears to be willing to go along. Temasek Holdings of Singapore says that it comprehends the US need to look at national security as it examines whether taking in foreign-based capital is OK.
Temasek’s decision does a lot to undermine the positions of funds from China and the Middle East. Now that one sovereign fund has shown a willingness to go along with US policy, it is harder for the others not to follow. Those who are willing to get under the tent will have a pick of the prizes which include troubled US banks and brokerages
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