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Sovereign wealth funds in the Middle East and Asia surged after the 2008 financial crisis.
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As the stock market plummeted in 2008, SWFs with cash on hand were able to snap up critically undervalued assets that eventually posted large profits.
The Government of Singapore Investment Corp. and Abu Dhabi Investment Authority invested $14.4B in Citigroup, resulting in a $1.6B profit for the GSIC when it sold half of the holdings in 2009.
First created in 1953 by Kuwait to sustainably grow excess oil profits, sovereign wealth funds are state-owned investment funds that largely invest in foreign assets.
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