By Federico Maccioni
DUBAI, Sept 21 (Reuters) – Qatar’s sovereign wealth fund QIA and JP Morgan Asset Management plan to launch a $20 billion strategic partnership across public and private markets in both equities and credit, the two companies said in a statement on Monday.
• Under the preliminary agreement, JP Morgan will manage customised global equity portfolios for QIA worth $15 billion.
• Under a $5 billion private markets initiative, QIA and the US asset manager will provide senior financing to middle-market firms in the US.
• The collaboration “will play an important role in unlocking new opportunities for both firms to generate long-term value,” said QIA CEO Mohammed Saif Al-Sowaidi.
• Qatar is facing financial strain due to the Iran war, which has made it impossible for it to reliably export liquefied natural gas – its primary income source.
• It has been seeking to diversify its economy by expanding its financial sector.
• The wealth fund has estimated assets under management of $580 billion and has long focused on building wealth overseas.
• However, Qatar’s prime minister on Sunday announced a new QIA division dedicated to developing domestic investments.
• In January, QIA signed a deal to expand its partnership with US investment bank Goldman Sachs, targeting $25 billion in investments.
(Reporting by Federico Maccioni; Editing by Susan Fenton)
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