Preqin – Sovereign Wealth Funds, 2023

Sovereign wealth funds (SWFs) play a crucial role in the investment landscape, with an estimated $33tn in assets under management globally. As SWFs continue to shift towards active and direct investment models, their importance is expected to grow even further. SWFs are increasingly taking the lead in consortiums and co-investment arrangements, leveraging their expertise to improve investment governance. Some SWFs are also exploring the possibility of monetizing their expertise by offering asset management services to other investors. In addition to traditional asset classes, SWFs are expanding their investments into early-stage ventures and credit as alternative investment opportunities. With a growing focus on diversification and in-house expertise, SWFs are at the forefront of funding solutions for private credit needs. This evolution in investment strategies and capabilities highlights the increasing significance and potential of SWFs in the global financial market.