The Qatar Investment Authority (QIA) secured a net profit of US$892 million as it exited its shareholding in US jeweller Tiffany & Co, delivering an impressive 9.3% internal rate of return, according to Global SWF's database.
QIA had built up an 12.8% stake in the firm by mid-2013 with a total investment of US$1,077 million. It divested a 3.5% stake for US$414 million in September 2017 in a block sale as it sought to rebalance its portfolio. The US$345 billion fund sold its remaining stake for US$1.55 billion as part of a renegotiated deal with Paris-based luxury goods group LVMH, which was agreed in October and closed last week.
In an interview with Reuters, Global SWF CEO Diego López noted that the deal "represents a very good return for a listed equity in any environment."
Tiffany’s has started to recover from the pandemic's impact on retail sales, thanks to a 70% rise in Chinese sales and a 92% surge in e-commerce sales.
Global SWF's 2021 Annual Report forecasts the fund will grow 63% by 2030 to US$562 billion, which would ensure it keeps its rank as the world's 15th biggest state-owned investor.