Libyan Investment Authority, Tripoli, plans to hire external managers to run $11 billion of its assets under a restructuring plan, said Abdulmagid Breish, chairman of Libya's $66 billion sovereign wealth fund.
The LIA will split its assets into three distinct funds starting as soon as next year, Mr. Breish said in an interview Thursday in London.
“The LIA is preparing itself to come back to the international fold,” Mr. Breish said. “We will use best-of-breed fund managers, advisers and consultants,” he said, without specifying which companies will be invited to bid.
Under the restructuring, LIA's assets will be divided among three funds. The Future Generation Fund will receive oil revenue. The government can tap into the Budget Stabilization Fund, and the Local Development Fund will invest in Libyan infrastructure, including medical facilities, transport and education, Mr. Breish said.
The LIA directly owns about 550 companies, making up about half its assets, Mr. Breish said. Some of those will be wound down or sold, while profitable ventures will eventually be added to the Future Generation Fund.
Mr. Breish said the LIA was also overhauling its risk management, decision-making, information technology and other internal systems.
The fund wants to “become one of the known, respected sovereign wealth funds, trusted by its own people, doing the job that a sovereign wealth fund is supposed to do,” Mr. Breish said.
