Sovereign Wealth Funds in 2024--An analysis from Global SWF in their 2024 Annual Report

 

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In some ways, it is becoming increasingly difficult to tell States and private actors apart. That may be the most important trend of the coming year. That convergence certainly has been evident in the construction of interlinked techno-bureaucracies overseeing a compliance based policy objectives driven economic environment. Increasingly it is also seen in the constitution of financial markets and market behaviors where, at some point, it may be state based objectives that will drive private markets. That appears to be discernible from the 2024 Annual Report of the folks at Global SWF.

Every January 1 the folks at Global SWF distribute their 2024 Annual Report - always worth reading and considering. This year they offer the following takeaways include:

--State-Owned Investors reached a historical peak of assets under management, thanks to market returns and sustained high oil prices. SWFs now manage US$ 13.0 trillion (+6.1%), and PPFs balance sheets stand for US$ 25.0 trillion (+6.0%).
--Deal activity also increased from last year to US$ 216.6 billion (+5.3%) in 585 deals (-2.2%). Average tickets size of US$ 370 million is the highest in the past six years.
--Mubadala was the top spender this year, with US$ 29.2 billion in 52 deals including ADIC, Mubadala Capital, and MGX. 85% of the capital went to developed markets.
--The Oil Five (ADIA, ADQ, Mubadala, QIA, PIF) broke every record with US$ 82 billion invested (+10.3%). Other groups like Canada’s Maple 8, the Singaporean funds or Australia's supers were also more active than in 2023.
--India and China continued to be popular, although investments in Emerging Markets dropped 12%. The UK and Australia increased in popularity dramatically, when compared to 2023.
--In that context, AustralianSuper was named “Fund of the Year” thanks to its growing activity, while the UK was named “Region of the Year” given its revamped investment landscape.
--The “Theme of the Year” went to Digitalization, including Data Centers, Digital Infrastructure, AI and Space Investing, which together saw US$ 27.9 billion of sovereign investment.
--Real Estate and Private Equity stayed flat, while Infrastructure and Credit continued to rise.
--The year saw seven new SWFs, nine new offices overseas, 27 new CEOs and 15 new CIOs.
--The outlook for 2025 is uncertain as new governments around the world settle, but we believe State-Owned Investors will continue “Soaring to New Heights”. We expect the industry to keep growing to 2030, when it may reach US$ 75 trillion.

Subscribers can access the full Annual Report HERE. The Executive Summary follows below.

 

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