Norway wealth fund wants to better tap growth potential of unlisted firms

Norway's $1 trillion sovereign wealth fund should have more freedom to invest in unlisted equities, its manager said, a proposal that could help the fund better capture the growth of U.S. tech firms. The world's largest sovereign wealth fund, which pools Norway's revenues from oil and gas production in stocks, bonds and real estate abroad, is currently only allowed to invest in unlisted equities if a listing is imminent. The fund's management has complained in the past about being unable to invest in companies early on in their growth, particularly U.S. tech firms, as companies have tended to seek a listing late on in their growth process. The country’s central bank suggested in a letter to the ministry of finance that the fund could be allowed to be invested in unlisted shares in large companies, and that a limit of 1 percent of the equity portfolio could be dedicated to them. This would have corresponded to $7.1 billion at the end of the second quarter, according to a Reuters calculation.

- KDAL -



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