Middle East Sovereign Wealth Funds Bypass Private Equity

Middle East Sovereign Wealth Funds Bypass Private Equity

Middle East sovereign wealth funds have increasingly bypassed private equity funds

Anne-Sylvaine Chassany from Financial Times reports that Middle East sovereign wealth funds are boosting their investment in unlisted companies and increasingly bypassing private equity funds as they seek higher returns.

Sovereign wealth funds in the region, which are managing about $1.8tn, are allocating between 13 per cent to a third of their new investment to private equity, a volume exceeding their property and infrastructure allocations, according to a report by US-based asset manager Invesco, which surveyed 120 senior investment professionals in the region.

“Contrary to popular perceptions, these vast state funds are not piling into global property and global infrastructure projects,” said Nick Tolchard, head of Invesco in the Middle East. “Many of them are boosting teams [in private equity].”

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