Private Equity Eyes Fundraising Boost With #Kuwait Fund’s Return - Bloomberg

Private Equity Eyes Fundraising Boost With Kuwait Fund’s Return - Bloomberg

Kuwait’s pension fund is restarting private equity allocations after a hiatus, according to people familiar with the matter, potentially unleashing billions of dollars in fresh capital for an industry grappling with a fundraising slump.

The Public Institution for Social Security is in discussions with multiple leading buyout firms about resuming deployments, the people said, declining to be identified discussing private information.

PIFSS has been largely absent from private markets since October 2022, when senior executives — brought in to overhaul the state institution after its former head was found guilty of personally profiting from it — were asked to resign.

At the time, the fund managed about $137 billion and ranked among Kuwait’s largest allocators. The shake-up left it without an investment committee, limiting activity to routine tasks.

The pension fund’s return to private markets is part of an effort to enhance revenue streams and boost returns, the people said. The new commitments may come with strict limits on how much can be deployed to each buyout fund, one person said.

Representatives for PIFSS declined to comment.

PIFSS is dipping back into private equity at a delicate moment for the industry, which is contending with sharply lower fundraising as firms struggle to return capital to investors. Despite a pickup in global dealmaking, private equity exits remain sluggish, pushing investors to rely more on secondary markets to offload holdings.

In May, the head of the $1 trillion Kuwait Investment Authority warned the industry was “very troubled,” citing practices such as continuation vehicles that can delay cash distributions to limited partners.

The KIA is among the largest wealth funds in the world, and the second-biggest in the cash-rich Middle East. The top six regional wealth funds oversee assets of about $4 trillion, and many of them have historically been significant backers of private equity firms.

A more active PIFSS would also support Kuwait’s broader push to attract global financial firms and strengthen its position as a regional business hub.

Carlyle Group Inc. is planning to open an office in Kuwait, Bloomberg News has reported, and co-founder David Rubenstein was among the titans of the industry who were in the region this month. Franklin Templeton and State Street Corp. are considering similar moves.

They would add to a small but growing roster. BlackRock Inc. opened a Kuwait office earlier this year, and Goldman Sachs Group Inc. has announced plans to follow.

Goldman is also jockeying for a potential $10 billion mandate from Kuwait’s sovereign wealth fund, Bloomberg News reported. Chief Executive Officer David Solomon recently said Kuwait’s ruler is “taking action to really spur significant investment, significant growth.”

#UAE stocks slide as oil drops on supply jitters | Reuters

UAE stocks slide as oil drops on supply jitters | Reuters

Stock exchanges in United Arab Emirates declined on Friday, tracking weaker oil prices as concerns about rising global supply from major producers dampened investor sentiment.

OPEC+ is leaning towards a modest output boost in December, sources familiar with the talks said ahead of the group's meeting on Sunday.

The eight OPEC+ members have boosted output targets by a total of over 2.7 million barrels per day - or about 2.5% of global supply - in a series of monthly increases.

Brent crude was down 0.4% to $64.74 a barrel by 1051 GMT.

Abu Dhabi's benchmark index (.FTFADGI), opens new tab slumped 1.1%, its steepest decline in over a month, pressured by a 3.8% drop in biggest developer Aldar Properties (ALDAR.AD), opens new tab and a 3.2% fall in UAE's third biggest lender Abu Dhabi Commercial Bank(ADCB.AD), opens new tab.

Americana Restaurants International (AMR.AD), opens new tab, which operates U.S. fast food brands in the Middle East, plummeted 5% after reporting Q3 profit below the $54.6 million analysts' estimate.

Dubai's main market (.DFMGI), opens new tab settled 0.8% down, snapping three-sessions gains, weighed down by a 2.7% decrease in blue-chip developer Emaar Properties (EMAR.DU), opens new tab, while state-run Dubai Electricity and Water Authority (DEWAA.DU), opens new tab slid 2.5%.

Separately, Dubai-owned ports and logistics company DP World has pledged to invest an additional $5 billion in India to strengthen its integrated supply chain network, the company said in a statement on Thursday.

Abu Dhabi stocks logged a 1% weekly loss, while Dubai's benchmark index slipped 0.1% for the week after four consecutive weeks of gains, according to LSEG data.