Research Tilburg Law School

Our mission is to understand and improve the role of law in tackling societal problems now and in the future.

Joseph McCahery publishes in the Oxford Handbook of Sovereign Wealth Funds

Joseph A. McCahery recently published a chapter on Co-Investments of Sovereign Wealth Funds in Private Equity in the Oxford Handbook of Sovereign Wealth Funds together with F. Alexander de Roode.

Direct investments are the preferred vehicle for large institutional investors to have control over their portfolio investments. In their chapter, titled “Co-Investments of Sovereign Wealth Funds in Private Equity”, Joseph McCahery and F. Alexander de Roode study the deal structure of direct investments by sovereign wealth funds (SWFs) in private equity transactions. Its analyses of direct investments are based on data from Global Corporate Venturing. They find that SWFs shift from investing in private equity funds to originating and co-investing together with private equity funds in deals. The choice for co-investment affects deal size, risk-bearing, fees and returns.

Overall, results of research conducted for this chapter show the strong interest of SWFs in direct investments in developed markets.