Global sovereign wealth funds are waiting to pounce on bargains following the Brexit vote, a senior industry expert said on Friday.
“Sovereign wealth funds are patient capital. They have a long term investment horizon,” Michael Maduell, president of the Sovereign Wealth Fund Institute, told CNBC’s “Squawk Box” on Friday.
“When everyone is freaking out about the pound sterling going to a 31-year low, wealth funds can come in and tactically purchase assets and tactically place bids on companies.”
In the wake of the U.K.’s referendum vote to exit the European Union (EU), the pound has plunged to its lowest levels since 1985 and a leadership vacuum has emerged in the wake of the resignation of Prime Minister David Cameron.
A rush of fund outflows from the U.K. has spurred several property funds – including those run by Standard Life, Aviva, M&G, Columbia Threadneedle and Henderson – to suspend redemptions as investors clamored to yank their money.
“These are the opportunities that cash rich wealth funds can take advantage of,” Maduell said. “They can jump on real estate when it goes too far down.” READ MORE: http://www.cnbc.com/2016/07/07/sovereign-wealth-funds-are-circling-for-brexit-deals-expert.html