Investing in Uncertain Times, our annual review of sovereign wealth fund investments in 2022, draws on IFSWF’s comprehensive proprietary database of sovereign wealth funds’ direct equity investments since 2015. It reveals that sovereign wealth funds pulled back from investing in 2022, given the increasing uncertainty in financial markets.
The 2022 IFSWF Annual Review identifies four key themes in sovereign wealth fund investment activity:
- 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.
- 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 IPO Winter: Sovereign wealth funds decreased direct investments at the late stage of capital raising and pre-IPO and IPO, reflecting an increasingly bearish market sentiment.
- Unlocking Yield: Sovereign Wealth Funds’ Shift Towards Direct Infrastructure Investments: Over the past five years, investment in infrastructure has seen a notable spike, particularly in developed markets.