Norway’s government won’t allow Norges Bank Investment Management, the nation’s US$1.6 trillion sovereign wealth fund and the world’s largest, to invest in private equity “at this time”, according to a Reuters report.
Last November, Norges Bank, the Norwegian central bank and manager of the wealth fund, recommended allocating up to 5% of the fund’s assets to private equity investments.
But the government has rejected the recommendation, Finance Minister Trygve Slagsvold Vedum is quoted as saying at a press conference last week, citing higher fees and lower transparency in the asset class, and the need for broad political consensus.
“We’ve concluded that we do not open to unlisted stocks at this time,” he is quoted as saying in a Reuters report on April 12. “We will continue to consider it.”
According to Vedum, the finance ministry plans to establish an independent expert council for the wealth fund, and will use its input for future decision-making on issues such as private equity investments.
Norges Bank Investment Management invests Norway’s surplus oil and gas revenue. It owns around 1.5% of all globally listed shares, with stakes in more than 8,800 companies.
Spokespersons for the wealth fund did not immediately respond to questions from Asia Asset Management.
