The deal negotiations started earlier this year and follow large, unprecedented transactions in which sovereign wealth funds from Asia and the Middle East have invested directly in suffering banks such as UBS, Merrill Lynch, Citigroup and Morgan Stanley.
The transaction will see CIC assuming a different role from previous wealth fund deals. The Chinese fund will become limited partner of the new private equity fund but will invest indirectly. This reflects the growing worry among sovereign wealth funds of a political backlash as they invest more money in well-known foreign companies.
