10 Years – Direct Investment Activity of Sovereign and Public Investors

Posted on 05/07/2023

Direct investments by sovereign wealth funds have oscillated from public markets to private markets, while public pension funds have gradually increased investment activity in both markets. This analysis excludes government transfers and fund commitments.

Computing transaction data from 2013-2022, on average, SWFI recorded US$ 161.48 billion in direct investments, versus public pension fund direct investments at US$ 121.53 billion on average.

Gulf sovereign wealth funds and Singaporean sovereign funds lead the charge in direct investments, as Chinese sovereign wealth entities pulled back from equity and equity-like direct investments. 2020 was a milestone year for direct sovereign wealth investment from oil-based sovereign investors due to rising oil prices and QE policies. In 2023, sovereign funds continue to go direct, but are far more opportunistic as interest rate rises have shifted the economic calculus.