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Growth in Multi-Trillion Sovereign Wealth Fund Assets Could Boost PE

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November 14, 2013

Sovereign wealth funds globally have added more than USD 750 billion to their total assets since 2012, the largest growth since to 2007, according to new research from Preqin. Growth is driven by the number of new sovereign wealth funds formed over the last few years and new capital injected into existing sovereign wealth funds.

 

It is an important trend because the level of capital flowing into alternatives from sovereign wealth funds is “extremely significant”, according to Preqin, which expects that once the newly established sovereign wealth funds become more developed, we could see a number of new allocators to alternative assets, including private equity.

 

Preqin analysts are upbeat on this group of institutional investors, as a statement by Amy Bensted, Head of Hedge Fund Products, makes clear, “Despite the challenging financial landscape and political unrest, sovereign wealth funds have continued to thrive and to grow, and this trend is predicted to continue over the next few years. We are still seeing new launches of sovereign wealth funds, with many countries approving plans for new launches over 2012-13.”  (Image source: preqin)

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