The Abu Dhabi Investment Authority (ADIA) is leaning further into private equity secondaries as global managers grapple with sluggish exits and tighter fundraising conditions, according to a report by Bloomberg.
According to its 2024 annual review, the $1tn sovereign wealth fund’s private equity division deployed “substantial capital” alongside GPs into attractively priced LP portfolios, while also pursuing take-privates and carve-outs as key sources of deal flow.
Despite industry headwinds, ADIA maintained its private equity allocation target at 12–17% of total assets. The fund delivered a 20-year annualised return of 6.3% and a 30-year return of 7.1%, both broadly in line with long-term averages.
The pivot towards secondaries comes as global buyout activity rebounded more than 30% last year, even as fundraising volumes fell over 20%. Many GPs have turned to continuation funds to provide liquidity to investors amid a dearth of IPOs and trade sales.
ADIA said it would “actively seek monetisation opportunities, while staying agile in response to shifting market dynamics.” The fund is also expanding its private credit exposure, having recently backed AGL Private Credit, Pemberton’s NAV Strategic Financing strategy, and Polus Capital’s Special Situations platform.
