China's sovereign wealth fund is merging a unit overseeing billions of dollars in private equity and infrastructure investments into its main operations, according to people familiar with the matter, seeking to boost efficiency after a talent exodus and as offshore investing grows more complex.
China Investment Corp., which oversees $1.2 trillion in assets, recently combined the operations of CIC Capital with its main overseas investment business, the people said, asking not to be named because the matter is private. The consolidation partly unwinds the Beijing-based fund's 2015 decision to create the unit as its direct investment arm to boost long-term returns and help Chinese companies expand abroad.
While the functions of CIC Capital's teams are little changed, the new structure is another step in streamlining operations. The sovereign wealth fund last year restructured how it decides on international investments, setting up two new committees in place of bodies at units CIC Capital and CIC International that had overlapping responsibilities.
CIC didn't reply to an emailed request seeking comment.
CIC Capital has been a key part of Chairman Peng Chun's effort to raise direct and alternative investments to 50% of the sovereign wealth fund's overseas portfolio, a goal he has months left to achieve under a five-year plan that runs till 2022.