China's sovereign wealth fund cancels $1 billion sale of US fund stakes linked to major private equity firms.

China's sovereign wealth fund cancels $1 billion sale of US fund stakes linked to major private equity firms.

China's sovereign wealth fund, China Investment Corp. (CIC), has decided to pull the plug on its planned sale of $1 billion in US fund stakes tied to major private equity firms. The decision comes after months of attempts to reduce the fund's exposure to the US market. According to sources familiar with the deal, CIC has signaled to potential buyers and managers that it is no longer selling the stakes [2].

Earlier this year, CIC looked to offload fund positions with firms including Carlyle Group Inc., KKR & Co., and TPG Inc. However, the sale has now been called off, with no official comment from CIC on the matter. The move is significant as it reflects a broader trend of Chinese investors reducing their exposure to the US market, particularly in the private equity sector.

The cancellation of the sale comes amidst a backdrop of geopolitical tensions and economic uncertainty. As of the current date, China's sovereign wealth fund has not provided any further details on the reasons behind the cancellation or any future plans regarding its US fund stakes. The decision is likely to have implications for the private equity industry and investors, particularly those with interests in the US market.

References:
[1] https://news.bloomberglaw.com/bankruptcy-law/chinas-wealth-fund-pulls-plug-on-1-billion-private-equity-sale
[2] https://www.morningstar.com/news/business-wire/20250623287827/greenbelt-capital-inaugural-fund-closes-at-hard-cap-of-1-billion