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Laxman Pai, Opalesque Asia:

The influence of sovereign wealth funds (SWFs) will increase in the US private equity landscape in 2025, according to a study.

As SWFs increasingly seek to diversify their investments to pursue higher returns and reduced risk, their influence in the US will grow, said EY Americas. PE firms are increasingly seeking partnerships with SWFs, whose assets are estimated to reach US$18tn by 2030.

In many cases, these will take the form of cornerstone investments in commingled vehicles; in others, it will take the form of increased co-investment, with alts managers and SWFs partnering side by side to invest in larger transactions.

In some cases, firms will set up separately managed accounts dedicated to specific opportunity sets and the tailored risk exposure of sovereign investors. And increasingly, sovereigns will invest directly in attractive assets with compelling long-term secular trends. Year to date, sovereign wealth funds have invested nearly US$30bn in PE deals for US companies, taking their cumulative deployment since 2018 to more than US$367bn.

The report said that PE will continue its investments in infrastructure across sectors, particularly in the energy and digital infrastructure spaces. The massive expansion of AI and other advanced technologies is requiring equally massive investment in data centers, and PE investment is at the center of navigating this growth. Over the last three years, PE firms have invested more tha......................

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