Sovereign investors favour unlisted tech
Friday, 05 24 2019, Category: Technology, Country: World
Sovereign wealth funds invested more than $3 billion in unlisted technology companies in 2018, the highest level in three years, research showed on Thursday, as public markets shrank due to fewer initial public offerings and big share buybacks.
The renewed push into private markets, via investments in segments like software, fintech, biotech and healthcare, is part of a broader trend of wealth funds viewing private companies as a less speculative bet than they used to be.
In a turnaround of a trend noted the previous year, sovereign wealth funds’ direct investment in unlisted firms rose by 17 percent in 2018, according to the 2018 International Forum of Sovereign Wealth Funds (IFSWF) Annual Report.
Such investments were often made jointly with both asset owners and asset managers, the report showed.