CIC takes minority stake in EIG Global

EIG, which is located in Washington, invests only in energy, resources and related infrastructure. "We believe that this relationship will provide valuable insight into the demand side of the global energy equation that will benefit all of our investors," commented the asset manager.

During its 30-year lifespan, EIG has injected around $13 billion into more than 260 projects the energy sector in 33 countries, including Indonesia. It had $9.5 billion in assets under management as of November 2011.

CIC, which is already an investor in several of EIG's funds, secured no voting rights through the deal.

The acquisition indirectly fits into the sovereign wealth fund's strategy to focus more on real assets, notably energy and infrastructure. However, it appears to go against a parallel strategy of greater geographical diversification, typified by CIC's purchase of a 25% stake in South African company Shanduka Group in December for ZAR2 billion ($245 million).

CIC nevertheless remains most committed to North America, which accounted for 41.9% of its investments at the end of 2010.

Over the course of 2010, CIC's exposure to alternative investments - such as private equity, hedge funds, real estate, energy and infrastructure - increased sharply to 21% from 6%. Last November it announced plans to invest in infrastructure in developed countries, starting with the UK. In January, CIC confirmed it had purchased an 8.68% stake in Thames Water.

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• Topics
• Expansion
• Greater China
• Financials
• Financial Services
• Growth capital
• China
• USA
• CIC