Sovereign wealth funds have caused a fair amount of controversy around the world, as governments ponder the effects of their extensive ownership stakes. But they are hungry for Western assets, and the China Investment Corp. may have hit upon an interesting strategy. According to the Financial Times, it is close to a deal to invest about $4 billion into a private equity fund run by J.C. Flowers. The fund will invest in financial institutions. The deal may create less tension that a direct investment by CIC, which owns a stake in the Blackstone Group. The fund will likely target smaller banks and brokerages.    

For more:
- here's the Financial Times article