While 2022 was eventful for private markets, the impacts were mixed for sovereign wealth funds (SWFs). Some experienced portfolio loss amid market volatility, while others backed by oil revenues benefited from higher energy prices. However, it is clear that SWFs have continued to build sophisticated investment teams and are becoming more strategic allocators.
In this report, we explore the evolving relationship between SWFs and alternatives, as well as their growing emphasis on ESG considerations when making investment decisions. We also examine how SWFs in the Middle East are increasingly turning to alternatives to diversify income sources and foster economic development.