Danantara to launch hedge fund programme with multi-billion-dollar manager allocations
Indonesia’s sovereign wealth fund Danantara is preparing to make its first allocations to hedge funds later this year, with plans to appoint a small group of managers to oversee separately managed accounts as it broadens its exposure to alternative investments, according to a report by Bloomberg.
Indonesia’s sovereign wealth fund, Danantara, plans to launch a hedge fund program later this year, according to Bloomberg. The fund intends to allocate capital to a small group of managers overseeing separately managed accounts with initial investments of at least $250 million each, averaging around $500 million per manager. Chief Investment Officer Pandu Sjahrir stated that the fund expects to begin allocations as early as next month or during the upcoming quarter.
Danantara, established by the Indonesian government, aims to enhance oversight of state-owned assets and invest in projects supporting long-term economic growth. The fund has previously invested in equities, fixed income, and now seeks to expand its alternatives portfolio through hedge funds. Manager reputation and liquidity will be key factors in the selection process, with input from other sovereign wealth funds crucial for due diligence.
Danantara oversees approximately $1 trillion in assets, primarily through state-owned enterprises. The fund is also considering establishing a European office and increasing exposure to higher-growth sectors, including artificial intelligence. Plans include waste-to-energy projects, real estate developments, and opportunities related to food security and critical minerals.
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