|
Laxman Pai, Opalesque Asia: 2022 was one of the most difficult years for State-Owned Investors (SOIs) in recent history. The total asset under management has reached $32.4 trillion as on December 31, 2022.
According to Global SWF's 2023 annual report, 2022 was the first year ever that Sovereign Wealth Funds (SWFs) shrank in value. The scale of the drop is debatable as most SWFs report significant delays, if at all - but Global SWF estimates the impact totaled US$ 1 trillion.
Similarly, Public Pension Funds (PPFs) have reduced their assets by US$ 1.3 trillion, with the subsequent worsening of funding ratios. "These are paper losses and some of the funds will not see them realized in their role as long-term investors, but it is quite telling of the moment we are living," the report said.
In 2022, state-owned investors deployed more capital in fewer deals than in 2021. In fact, the reduction in Venture Capital and the increase in mega-deals meant that the average ticket of the year was US$ 0.35 billion, which had not been recorded in over five years. Compared to 2021, SWFs invested 38% more, with US$ 152.5 billion in 427 transactions; while PPFs invested 9% less, with US$ 108.6 billion in 320 deals.
SWFs deployed an impressive US$ 152.5 billion (38% up from 2021) in 427 deals (16% down from 2021). It is the second most active year after 2014, fueled by the good prospects among Gulf SWFs for year-end capital injections. Seven of the Top 10 invest...................... To view our full article Click here
|
RSS
