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GIC sells US$300m Vista Equity stake amid founder’s tax scandal, likely incurring loss

Singapore’s sovereign wealth fund, GIC, has sold its stake in Vista Equity Partners, valued at about US$300 million — likely to result in a loss of investment — amid a tax scandal involving the firm’s founder, Robert Smith.

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The Financial Times (FT) has reported that Singapore’s sovereign wealth fund, GIC, has parted ways with Vista Equity Partners, selling its stake following a significant tax scandal involving the buyout firm’s founder, Robert Smith.

GIC, a global heavyweight among investors, decided to dispose of its approximately US$300 million stake in Vista at a discount, consequently incurring a loss on its investment.

This move is seen as particularly unusual, as stakes in buyout funds are infrequently sold for reputational reasons.

The backdrop to this decision is the $140 million settlement in 2020 that Robert Smith, the billionaire founder of Vista, made with US authorities.

Smith and investor Robert T. Brockman were implicated in a tax evasion case. Smith entered into a non-prosecution agreement with the IRS, agreeing to pay US$139 million and to testify against Brockman.

The following month, Vista’s president and co-founder, Brian Sheth, left the company. He maintained that his departure was unrelated to the tax situation.

Similarly, the UK’s Wellcome Trust, a leading charitable donor and institutional investor, also withdrew its investment from Vista’s funds.

In September 2019, Vista Equity Partners raised US$16 billion for their flagship fund, which stood as the largest technology-focused fund ever amassed by an independent private equity firm at that time.

In a recent letter to stakeholders, Smith expressed confidence, indicating that their new fund aims to exceed the amount raised previously.

When approached for comments by FT, all parties – GIC, Vista, and Wellcome Trust – declined to comment.

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whatever it is, be sure pension $2k/mth is intact
this is easily achieved, planned since 2003

Lost $$$?
No problem.
Just increase electric and water price will do…..make that add somemore too…GST!😆😆😆😆🤣🤣🤣🤣🤣🤣
70% voted for it?
Is it not?

losses? no problem!
coz (they think) it’s their own $$$$$$$$, so no need to be accountable.
a tax rise here, a tax rise there will cover those losses
not a problem AT ALL !!!

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If TH and the GICs are indeed making money, the GST would not be increased. Neither would there be a need to seat a PAP in the Istana. There will come a day when the Truth is revealed. The suicide rate will rise in the PAP.

What’s the problem? With more population, more to tax. COE 144k is not bad but higher will be ideal at 200k . While singaporeans are rich, they love the $200 or rebates . Since so rich, COE is nothing. Look at the roads. Full of cars.

86% is a endorsement of the love of the sg model. 🤝👏👏👌👍😊❤

Electricity hike should be more since global warming. Also water hike is too little. Every year hike 5% would be ideal.

To make a loss is to raid our reserves, isn’t it? Not in the name of investment by GIC, Temasek Holdings or even MAS. Yes, if you build BTO at below market value for land or if suggestions to use a higher NICR.

By virtue of 86% approval rate, you can forget about independent audit

So what? We have 86%😊🤝👍👌

It would be interesting to know how much of GIC exposure to Communist China is invested in bonds and other financial instruments issued by many of the financially troubled Chinese banks ,local municipals and property developers the like of China Evergrande
Just hope that GIC does not end up writing off Billions of SG’S secret reserves.🤔🤫😞🤬.

Yet another long long investment shot is in deep trouble warranting a write off again from those free flow citizens CPF moneys on loan to GIC.Kept loosing is never a problem or concern as it’s Ah Kung money 💰💰💰💰 those idiots are speculation with anyway.

Lawrence Wong now paying for other people’s tax evasion. Not bad keep it up. I think GST should be 15%, looks like he needs the money.

Well done pineapple lovers. !!

Give yourself a big slap !!

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