This SlideShare provides a brief overview of what are Sovereign Wealth Funds, classifications, and top SWFs globally. In recent years SWFs have shown interest in VC-backed deals, with a growing trend in technology and life sciences. SWFs can be a force for positive change: the amount of money in an SWF is usually substantial, allowing them to contribute towards a country’s long-term growth by means of long-term investments in life sciences innovations.

1. Overview of SWFs, Classifications & Importance
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Sovereign Wealth Funds
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2. Sovereign Wealth Funds
Contents Overview
• Defining SWFs
• Classifications & Assets
• Importance of SWFs
• Top 10 SWFs Ranked
• SWF: By the Numbers
• Involvement in VC Deals
• Potential in Life Sciences
• Recent SWF Deals in Life
Sciences
2 August 2021. © Xeraya Capital.

3. What are Sovereign Wealth Funds?
Sovereign wealth fund (SWFs
for short) is a state-owned
investment fund that invests in
real and financial assets.
Funds typically comprise of money
generated by the government, often
derived from a country's surplus
reserves. It can also be referred to
as sovereign investment funds or
social wealth funds.
Source: https://www.investopedia.com/articles/economics/08/sovereign-wealth-fund.asp
Credit: Corporate Finance Institute
3 August 2021. © Xeraya Capital.

4. Sources of Sovereign Wealth Funds
Source: https://www.investopedia.com/terms/s/sovereign_wealth_fund.asp
4 August 2021. © Xeraya Capital.
Surplus
Reserves
Trade
Surpluses
Bank
Reserves
Foreign
Currency
Ops
Commodity
Exports

5. Classification of SWF Functions
Source: https://www.investopedia.com/terms/s/sovereign_wealth_fund.asp
5 August 2021. © Xeraya Capital.
Conventional
Stabilization Funds
Savings/Future Generation Fuds
Public Benefit Pension Reserve
Reserve Investment
Strategic Development
Industry-specific
Non-Conventional
Foreign Currency Reserve
Specific Government Purpose

6. Diverse Portfolio of Assets
Source: https://www.thecityuk.com/news/sovereign-wealth-funds-can-help-
bolster-national-growth-says-thecityuk/
6 August 2021. © Xeraya Capital.
Percentage of SWFs Alternative Asset Class
64% Infrastructure Investments
62% Real Estate
60% Private Equity
59% Natural Resources
38% Private Debt
35% Hedge Fund Investments
Aside from being critical providers of global capital, SWFs are also increasingly looking to new
industries and asset classes. In recent years, many SWFs have been increasing their exposure to
alternative assets.

7. Importance of Sovereign Wealth Funds
Source: https://www.investopedia.com/terms/s/sovereign_wealth_fund.asp
SWF investments could
contribute towards long-term
growth by funding
infrastructure and supporting
post-crisis economic
development.
They can invest in an emerging
industry or stimulate certain
sectors having state-owned
interests that are in distress.
7 August 2021. © Xeraya Capital.
Countries can create or dissolve SWFs to
match the needs of their population. One
example is during the COVID-19 crisis, where
SWFs can act as a country’s financial reserve
during economic instability.

8. Top Ranking Sovereign Wealth Funds
Source: https://www.swfinstitute.org/fund-rankings/sovereign-wealth-fund
8 August 2021. © Xeraya Capital.
Rank Sovereign Wealth Fund AUM (estimated)
1 Norway Government Pension Fund Global USD 1.29 trillion
2 China Investment Corporation USD 1.04 trillion
3 Kuwait Investment Authority USD 692.9 billion
4 Abu Dhabi Investment Authority USD 649.2 billion
5 Hong Kong Monetary Authority Investment Portfolio USD 580.5 billion
6 GIC Private Limited (Singapore) USD 545 billion
7 Temasek Holdings (Singapore) USD 484.4 billion
8 Public Investment Fund (Saudi Arabia) USD 430 billion
9 National Council for Social Security Fund (China) USD 372 billion
10 Investment Corporation of Dubai USD 302.3 billion
…
29 Khazanah Nasional (Malaysia) USD 31 billion
Valid as of 1st August 2021. Credit: SWF Institute & AsianInvestor.net

9. SWF: By the Numbers
9 August 2021. © Xeraya Capital.
Significant
Funds
Despite pandemic,
SWFs are still larger
than private equity
& hedge funds:
• SWFs - $6.4 trillion
• Private Equity -
$4.1 trillion
• Hedge Funds -
$3.4 trillion
- TheCityUK
Participated in 142
VC deals worth
$13.4 billion in 2019
19x increase from
2010 ($700 million
into 17 deals).
>91 SWFs with
nearly $8.2 trillion
AUM early 2020
Significant increase
over last few
decades.
Average of 8%
Growth in AUM
from 2010-2019
Falls by 21% late 2020
due to COVID-19
pandemic.
Source: https://www.thecityuk.com/news/sovereign-wealth-funds-can-help-
bolster-national-growth-says-thecityuk/

10. Rising Trend in Private Equity-Venture Capital
Since 2010, SWFs have been
active on venture capital,
and since 2014, more SWFs
are getting involved with
larger capital deployment.
2018-2019 was a record period
for SWFs investing in venture
capital. SWFs are regarded as a
key source of long-term capital,
able to foster change and
framing innovation.
Source: https://www.venturecapitaljournal.com/why-are-
sovereign-wealth-funds-in-love-with-venture/
10 August 2021. © Xeraya Capital.
With the increasing awareness (and
preference) towards ESG investing, SWFs can
provide the extra potential to rebuild and
bounce back from the current pandemic.

11. SWFs Potential in Biotechnology & Life Sciences
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11
Source: 2020 Sovereign Wealth Funds Report by IE University and ICEX-Invest
Increased
Focus in 2020
SWFs were most
active in the
following sectors:
• Technology – 25%
• Services – 18%
• Life Sciences – 17.6%
- IE University & ICEX
In total:
11 deals in Pharma
10 deals in Biotech
Investments in
Green Assets
Increased to USD 11
billion over the period
2015-2017
Growing interest in human
development, innovative
healthcare & well-being
Increased awareness in
the potential of applying
biotech in long-run issues
Accepting that life sciences
innovation requires long-
term capital (fitting for SWFs)

12. Recent SWF Deals In Life Sciences
12
Singapore’s Temasek led an
investment round of $250m
in BioNTech, a German
biotech company developing
a COVID-19 vaccine.
June 2020
July 2020
Qatar Investment Authority (QIA) invested
in German biotech company CureVac
developing a COVID-19 vaccine (and other
RNA-based therapies)
Xeraya Capital (a VC & PE company
owned by Malaysia’s SWF, Khazanah
Nasional Berhad) participated in a
$50m investment round of a UK-based
digital health firm, Congenica.
November 2020
Source: https://londonlovesbusiness.com/sovereign-wealth-funds-can-help-bolster-national-growth/
October 2020
Mubadala Investment Company (from
Abu Dhabi) invested $235m into Evotec SE,
a German biotech company specializing in
drug discovery and development.
March 2021
Mubadala announced
investment of £800m in
the UK life sciences sector.
August 2021. © Xeraya Capital.
Temasek & DCVC led an investment
round of $430m in Pivot Bio. MLSCF II
(managed by Xeraya Capital) invested
since 2016. Current valuation estimated
to be nearly $2b.
July 2021

13. • Sovereign wealth funds are state-owned investment funds
derived from a variety of sources. The amount of money in an
SWF is usually substantial, allowing them to contribute
towards a country’s long-term growth by various means.
• Recent trends show increased involvement by SWFs in venture
capital deals by more than 19x over the past 10 years.
• In recent years, life sciences investments outpace any other
technology subsector in terms of the number of deals
executed.
Conclusion
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14. By xeraya capital
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