Sovereign Wealth Funds
Major players in the global economy, sovereign wealth funds (SWFs) invest hundreds of billions around the world each year and—in the process—encounter myriad legal, tax, regulatory, and operational challenges. We represent nine of the top 20 SWFs globally, with trillions in combined assets under management, to help them overcome legal obstacles and attain business goals—from their most complex transactions to their day-to-day operations.
Our Global Sovereign Wealth Funds strategic initiative encompasses lawyers across the Middle East, Europe, the United States, and Asia who serve many of the largest and most active of these governmental and quasi-governmental investors globally. Our lawyers know we can best succeed for our SWF clients by gaining an intimate knowledge of each client’s distinct objectives, structures, cultures, jurisdictional requirements, and unique role in our global economy. Our firm’s industry-specific approach helps us guide SWFs as they seek to expand investments into a broader array of sectors.
AREAS OF SERVICE
We advise SWFs on the full range of issues they navigate in building and maintaining their diverse investment portfolios and transactions, including in the following areas:
- Tax structuring
- Global regulatory compliance
- Liquid investments, including equities and fixed income and global custody and securities lending
- Fund investments, including all variety of open- and closed-ended pooled and single investor structures
- Co-investments and direct investments across asset classes and industries
- Organizational and operational needs, including subsidiary maintenance and governance, labor and employment, immigration, and dispute resolution
- In-country strategic development and investment strategies—particularly as they relate to infrastructure projects, regulatory reform, and the transfer of technology and know-how
HOW WE CAN HELP
Our experience counseling SWFs includes:
- Advising on capital deployment through primary and secondary private fund investments, separately managed accounts, seed and general partner (GP)-stake arrangements, co-investment and side-car arrangements, and other bespoke strategic private investment arrangements
- Identifying and pursuing minority-stake and majority control deals
- Devising tax strategies and efficiently structuring transactions to minimize US and international tax exposure and take advantage of global treaty networks, including considerations related to Section 892 of the US Internal Revenue Code and the Foreign Investment in Real Property Tax Act
- Navigating foreign subsidiary and investment regulations such as the Committee on Foreign Investment in the United States (CFIUS), EU regulations, and other legislation globally, as well as US and other unilateral and multilateral embargoes and sanctions
- Supporting SWFs on labor and employment and immigration issues related to the establishment and operation of international offices
- Advising on regulatory disclosure considerations in the United States and in jurisdictions that have adopted low thresholds for disclosure
- Facilitating compliance with anti–money laundering and counter-terrorism “know your customer” requirements
- Bringing a holistic and global perspective to environmental, social, and governance (ESG) and sustainability policies to ensure regulatory compliance, mitigate risk, and navigate cultural influences
- Providing training on legal and regulatory developments that affect SWF operations, including one-on-one mentoring programs
