ADIA raises private equity and hedge fund allocation targets
Abu Dhabi Investment Authority 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 private equity and hedge fund allocations, as indicated in its 2025 annual review. The sovereign wealth fund increased its private equity allocation range to 15% to 20% from 12% to 17% a year ago, a move aimed at capitalizing on the recovery in buyout activity and heightened market volatility.
Similarly, ADIA raised its allocation range for financial alternatives, encompassing hedge funds and related strategies, from 5% to 10% to 7% to 12%. These adjustments follow a robust year for private-market exits, with global exit volumes surpassing the $1tn mark for the first time since 2021, alongside an IPO activity level not seen since the 2020-21 boom.
ADIA's investment performance has also shown improvement, with its annualized return over 30 years increasing to 7.2% from 7.1% in 2024, and the 20-year annualized return rising to 6.6% from 6.3%. Notably, ADIA has reduced its target allocation to real estate to 2% to 7% from 5% to 10%, though its overall exposure to this asset class remains consistent.
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Also reported by 1 other outlet
- ADIA raises hedge fund and PE allocation targets hedgeweek.com
