In 2018 and 2019, these niches attracted 10% of all SWF direct investments, including some multi-billion-dollar leveraged buyouts, in which sovereign funds continued to participate in consortia, as we highlighted last year2.
For example, Singapore’s GIC participated in a consortium that took Ultimate Software — a provider of human resources management software — private for $11 billion in February 20193.
GIC also invested alongside the Abu Dhabi Investment Authority and other investors in the buyout of Press Ganey Associates, a company that provides digital platforms for process management in healthcare organisations, for an undisclosed sum in July4.
The Covid-19 crisis is likely to accelerate the adoption and habitual use of enterprise solutions technologies and increase the importance of cybersecurity products and services in the coming months and years. It looks, therefore, that sovereign wealth funds have already gained exposure to these companies and may be set to benefit from that prescience.