Cleary Gottlieb Counsel in Four Sovereign Wealth Fund Investments into U.S. Financial Institutions
January 25, 2008
Cleary Gottlieb has been counsel in four of the most recent investments into U.S. financial institutions by sovereign wealth funds.
The firm was counsel to Citigroup in its sale of $7.5 billion of mandatorily convertible trust preferred Units (Upper DECS Equity Units) to the Abu Dhabi Investment Authority. Citi and ADIA agreed on the investment, which was conducted as a private placement, on November 26, and it closed on December 3.
In a deal announced January 15, the firm was counsel to Citigroup in the $12.5 billion investment in Citi by a group that includes Government of Singapore Investment Corp. and Capital Research Global Investors, Capital World Investors, the Kuwait Investment Authority, the New Jersey Division of Investment, shareholder Prince Alwaleed bin Talal of Saudi Arabia and former chief executive of the company Sanford Weill and his family foundation.
In another deal announced on January 15, the firm represented the Korea Investment Corporation in its $2 billion investment in Merrill Lynch. KIC is the sovereign wealth fund of South Korea and was established in 2005. This transaction represents KIC’s biggest investment to date.
Prior to this, Cleary Gottlieb represented Temasek in its $5 billion investment in Merrill Lynch, which was announced on December 25. Temasek is an investment holding company owned by the Singapore government.