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Laxman Pai, Opalesque Asia: Sovereign wealth fund (SWF) investment deals fell more than one-third in 2022 in the face of increasing uncertainty in financial markets, said a study.
According to the IFSWF's annual review, the total annual value of publicly disclosed direct investments declined by only 3.8% to $71.3 billion in 2022 and the number of deals fell by more than a third to 306 from 468 in 2021, which saw record highs.
The 2022 IFSWF Annual Review identifies four key themes in sovereign wealth fund investment activity:
1. Emerging markets lose their shine amid global uncertainty: In 2022, sovereign wealth funds retrenched from emerging markets amid greater geopolitical uncertainty and the end of COVID-19 support measures.
In terms of direct investments, this cautious approach to the market was most evident in their retreat from emerging markets. In 2022, new sovereign wealth fund investments in emerging markets fell from 44% of the total dollar value in 2021 to only 14%, a decline by more than two-thirds, from $33 billion to only $10 billion.
2. Early-stage companies lead the tech sector: Technology companies have endured difficult times in 2022. But sovereign wealth funds continue seeking innovative companies in the venture capital space.
The advancements in technology have affected almost all parts of the global economy, including its products, services, delivery systems, and energy sources. Consequently, every investor, including sovereig...................... To view our full article Click here
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