Analysis Private capital set to transform sovereign wealth funds | Reuters

A curious trend is developing among powerful sovereign and state-backed investment funds: despite being super rich in mainly oil-generated wealth, they are tapping the private sector for more capital.

Qatar, Bahrain, Singapore, Abu Dhabi and Kazakhstan are among those that have been raising capital via bond sales, fund placements or bank loans.

The participation of private investors whose investment horizon is shorter may drive sovereign wealth funds to move away from typically orthodox and long-term investment strategies.