Libya’s SWF to hire managers for US$11 billion of assets

25 April 2014   Category: News, Global, Africa   By Daniel Shane

The Libyan Investment Authority (LIA), the North African sovereign wealth fund with about US$66 billion in AUM, plans to hire external firms to manage about $11 billion of its assets.

In an interview with Bloomberg, Chairman Abdulmagid Breish said that the LIA will split its assets into three separate funds as early as next year as it seeks to once again being investing overseas.

The fund, which was established in 2006, has suffered from years of mismanagement both during and in the aftermath of the reign of former ruler Muammar Gaddafi.

“The LIA is preparing itself to come back to the international fold,” Mr. Breish said. “We will use best-of-breed fund managers, advisers and consultants.” He did not specify which external fund managers that the LIA would be using.

The LIA is Africa’s second largest sovereign wealth fund following Algeria’s Revenue Regulation Fund. It was established to invest Libya’s oil surpluses, and owns stakes in Italy’s Unicredit and defence firm Finmeccanica.

The wealth fund has seen some of its assets frozen after the International Criminal Court claimed that they were held on behalf of Mr. Gaddafi’s family. It is also embroiled in high-profile legal cases with Societe Generale and Goldman Sachs in London.