Sovereign wealth funds have basically been forced to take a lower profile in recent months. Following a spate of big-time, high-profile investments in brand-name Wall Street firms, they were hit with a back lash of sorts. Politicians started weighing in. Already, they may be morphing their strategies. The Financial Times notes that half of the raised equity, about $3.75 billion, in the BlackRock fund that bought $15 billion troubled securities from UBS was from sovereign wealth funds. This is not a stupendous amount of sovereign wealth money. But it does indicate a desire to invest in lower profile ways, via private equity funds for example. I doubt we'll see a lot more direct investing. For the private equity industry, this may emerge as significant source of new funds.  

For more:
- here's the Financial Times article

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