They may be placing smaller bets, but sovereign wealth funds were back with a vengeance in the third quarter.
Global corporate mergers and acquisitions activity involving sovereign wealth funds jumped sixfold to nearly $22 billion in the quarter, with 37 deals completed. Global announced M&A volumes involving state investment vehicles stood at $21.8 billion, up from $3.6 billion in the second quarter, according to our data.
The number of deals more than doubled from 17 in the April-June period. Only two weeks into the fourth quarter, there were five pending or completed deals with a combined value of $164.7 million. At the height of the boom in the first quarter of 2006, sovereign wealth funds sealed 35 deals worth $45.7 billion.
Managers at sovereign wealth funds — those who have kept their jobs — probably feel they have a lot to make up for, having lost most of some $80 billion they poured into banking shares before the peak of the crisis.