ADIA raises hedge fund and PE allocation targets
Abu Dhabi Investment Authority (ADIA) has increased its target allocations to both private equity and hedge funds as the roughly $1tn sovereign wealth fund looks to capture opportunities from a recovery in buyout activity and heightened market volatility, according to a report by Bloomberg.
Abu Dhabi Investment Authority (ADIA) has raised its targets for investments in private equity and hedge funds, according to a Bloomberg report. The sovereign wealth fund, which manages roughly $1tn, expanded its allocation range for financial alternatives to 7% to 12%, up from a previous range of 5% to 10%. ADIA also increased its private equity target to 15% to 20% of its portfolio, up from 12% to 17% the previous year.
The changes come after a strong year in private-market exits, with global exit volumes surpassing $1tn for the first time since 2021. ADIA's own performance also improved, with its 30-year annualized return rising to 7.2% from 7.1% in 2024 and its 20-year annualized return increasing to 6.6% from 6.3%. However, ADIA reduced its target allocation for real estate to 2% to 7%, while its exposure to the asset class remained largely unchanged.
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- ADIA raises private equity and hedge fund allocation targets privateequitywire.co.uk
