Total sovereign wealth fund (SWF) assets under management stand at USD4.62tn, an increase from USD3.98tn in 2011, Preqin data reveals.
Data analysed for the forthcoming 2012 Preqin Sovereign Wealth Fund Review also show that more than half of all sovereign wealth funds, 57%, invest in private equity. However, the overall proportion of such institutions investing in private equity has fallen slightly in the last year, as several newly established sovereign wealth funds have yet to make their maiden allocations to the asset class.
Some 46% of sovereign wealth funds invest in private equity through fund commitments, and a further 11% through direct investments.
Larger SWFs are more likely to invest in the asset class than their smaller counterparts: 83% of those with 
over USD250bn in AUM invest in private equity compared to 25% of those with less than USD1bn in AUM
A total of 73% of SWFs that invest in private equity are based in Asia or the MENA region, while 17% of SWFs that invest in private equity are based in North America, while Australasia and Europe are home 
to 7% and 3% respectively.
Some 79% of SWFs that invest in private equity funds have a preference for buyout vehicles. Venture funds are the next most popular fund type, with 59% expressing an interest in funds of this type.
The proportion of SWFs with a preference for multi-manager vehicles has increased from 20% in 2011 to 
28%.
North America-focused investments are the most sought after, with 76% of SWFs having a preference for 
investments in the region. 72% seek exposure to Europe, and 62% are keen on Asia-focused investments. 

“Sovereign wealth funds have a continued interest in private equity and many believe the asset class offers favourable long-term investment opportunities,” says Alex Jones, Managing Editor of 2012 Preqin Sovereign Wealth Fund Review. “Over recent years, the number of sovereign wealth funds seeking to hold more diverse portfolios of investments, by both strategy and geography, has risen. Although financial markets remain turbulent, such institutions represent a significant amount of the capital invested in private equity and are likely to continue to allocate increasing amounts to the asset class going forwards.”
