Sovereign Wealth Funds See AUM Up $0.5T

Apr 13 2012 | 9:13am ET

The world’s sovereign wealth funds have been getting wealthier—their assets under management now stand at $4.62 trillion, up from $3.98 trillion in 2011, according to the latest data from Preqin.

The data provider’s 2012 Sovereign Wealth Fund Review reveals some other interesting facts about such funds—57%, for example, invest in private equity, a total which is actually down slightly in the past year. Breaking the data down further, the report says 46% of SWFs invest in private equity through fund commitments and 11% through direct investments.

Larger SWFs are more likely to invest in private equity than are their smaller counterparts: 83% of those with AUM over $250 billion invest in the asset class compared to 25% of those with AUM under $1 billion.

The majority of SWFs investing in p.e. (73%) are based in Asia or the MENA region, compared to 17% in North America, 7% in Australasia and 3% in Europe. On the other hand, North America-focused investments are the most sought after, with 76% of SWFs having a preference for investments in the region while 72% seek exposure to Europe and 62% are keen on Asia-focused investments.

A full 79% of the SWFs investing in private equity funds prefer buyout vehicles, according to the Preqin data. Next most popular are venture funds, with 59% of the SWFs polled expressing an interest in funds of this type.

Preference for multi-manager vehicles is growing—from 20% of SWFs in 2011 to 28% in the latest calculations.

“Sovereign wealth funds have a continued interest in private equity and many believe the asset class offers favorable long-term investment opportunities. Over recent years, the number of sovereign wealth funds seeking to hold more diverse portfolios of investments, by both strategy and geography, has risen. Although financial markets remain turbulent, such institutions represent a significant amount of the capital invested in private equity and are likely to continue to allocate increasing amounts to the asset class going forwards,” said Alex Jones of Preqin.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Videos

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.