China wealth fund drops $1 billion private equity sale plan - Bloomberg

Published 24/06/2025, 16:38
© Reuters.

Investing.com -- China’s sovereign wealth fund has canceled its planned sale of $1 billion in US fund stakes connected to major private equity firms, Bloomberg reports.

China Investment Corp. (CIC) had earlier this year sought to sell fund positions with companies including Carlyle Group (NASDAQ:CG) Inc., KKR & Co (NYSE:KKR)., and TPG Inc. as part of an effort to reduce its exposure to US assets. However, the $1.3 trillion state fund has now informed potential buyers and fund managers that it is no longer proceeding with the sale, according to Bloomberg’s sources familiar with the matter.

The reversal marks an unusual move as institutions rarely change course after advancing to this stage in a sales process. The original sale plan had reflected CIC’s decreasing appetite for risk and concerns about having significant capital locked in less liquid US investments during the ongoing US-China trade tensions.

Sources indicated that CIC was also worried about creating the perception that it was retreating from investments, which factored into its decision to cancel the sale.

The sovereign wealth fund’s planned divestment would have impacted stakes tied to some of the biggest names in the private equity industry before the fund changed its position.

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