Sheikh Saoud Salem Al-Sabah, managing director of the $1tn Kuwait Investment Authority (KIA), has called on private equity firms to accelerate capital returns to limited partners, emphasising the growing appeal of secondaries and special situations.

Speaking at the Qatar Economic Forum in Doha, Al-Sabah noted that parts of the industry had pursued deals in recent years without clear exit strategies, particularly during a period of low rates and abundant liquidity. “The opportunities in private equity are in secondaries and special situations,” he said. “It is because of the need for private equity to return capital to LPs.”

Al-Sabah’s remarks highlight the mounting pressure on GPs to deliver liquidity amid a prolonged slowdown in exits. As distributions lag and traditional realisations remain limited, secondaries have emerged as a vital channel for recycling capital, offering LPs more flexibility and earlier cash flows.

Despite the challenges, the rise of specialised strategies such as continuation vehicles and special situations underscores the industry’s ability to adapt and innovate. As one of the largest sovereign wealth funds globally, the KIA’s increasing focus on these segments reflects a broader institutional trend toward more active and diversified private market allocations.

The comments come as private equity firms face heightened scrutiny over fund performance and capital deployment timelines, prompting many to embrace new structures that balance investor liquidity with long-term value creation.

Source: Bloomberg

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