China’s $300bn sovereign wealth fund, China Investment Corporation, is reportedly close to opening its second satellite office outside of mainland China.
According to a report by CNBC, CIC is expected to announce the opening of an office in Toronto, Canada, at the end of the week.
CIC opened an office in Hong Kong last year but has conducted much of its business since its formation in 2007 from its headquarters in China’s capital Beijing.
CIC is responsible for managing part of China’s foreign exchange reserves. Established with approximately $200 billion of assets under management, it has since grown to in excess of $300 billion.
Its best-known investments to date are large entity investments in New York-based investment bank Morgan Stanley and private equity and real estate giant Blackstone. The fund has also reportedly backed Blackstone's debut infrastructure fund, Blackstone Infrastructure Partners, which held a first close on $200 million early last year.
CIC has also become one of the most potent investors in global real estate. The fund has made limited partner commitments to traditional private equity funds but has been more active lately in large club deals with similar size investors.
Examples include its participation in Brookfield’s $5.5 billion Real Estate Turnaround Consortium, a global opportunistic club venture which invested in General Growth Properties, the US mall business last year. CIC has also co-invested heavily in central London offices, particularly in the City and Canary Wharf and at the end of the year, it invested via a club which boughta large industrial property fund from Dutch group ING Real Estate Investment Management.