17 Apr 2012
(MENAFN) Preqin, a research and consultancy firm focusing on alternative asset classes said that assets of sovereign wealth funds (SWFs) increased by 16 percent in 2011-2012 reaching USD4.62 trillion, reported Emirates 24/7.
The company added that Abu Dhabi Investment Authority (Adia), which controls around USD627 billion, is the largest sovereign wealth fund active in the private equity space, and has an allocation range to the private equity asset class of between 2 percent and 8 percent of total assets under management.
It also said that another wealth fund is the Kuwait Investment Authority, which allocates 10 percent of its USD296 billion under management to private equity.
Moreover, of sovereign wealth funds with total assets of USD250 billion or more, 83 percent invest in private equity funds, whereas this figure falls to 55 percent for SWFs with between USD10 billion and USD49 billion.
It is worth noting that the 5 largest SWFs that invest in private equity funds have combined assets under management of more than USD2.2 trillion.
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