Kuwait’s Public Institution for Social Security (PIFSS) is preparing to restart its private equity commitments after a three-year suspension, potentially unlocking billions of dollars in fresh institutional capital for global buyout funds, according to sources cited by Bloomberg.

The $137bn state pension fund halted new private market allocations in 2022 amid an internal overhaul that followed the departure of senior executives. Its renewed engagement marks part of a broader strategy to diversify income streams and boost long-term returns.

PIFSS is currently in talks with several major private equity firms, with any future allocations expected to come under stricter exposure limits per fund.

The move comes at a pivotal time for the global private equity industry, which continues to face fundraising headwinds as exit activity slows and liquidity pressures persist. Despite a modest rebound in dealmaking, investors have become increasingly cautious about new commitments while relying more on secondaries to manage portfolio exposure.

The reactivation of Kuwait’s pension fund also supports the country’s broader efforts to strengthen its role as a financial hub. Carlyle Group plans to open a Kuwait office next year, joining BlackRock, which established operations earlier in 2025. Goldman Sachs, Franklin Templeton, and State Street are also exploring expansion in the market.

The decision follows a recent warning from the head of Kuwait’s $1tn sovereign wealth fund, the Kuwait Investment Authority (KIA), who described the private equity sector as “very troubled,” citing continuation vehicles and delayed LP distributions as systemic challenges.

PIFSS’s return could provide a much-needed boost to global fundraising at a time when institutional investors across the Gulf, including Abu Dhabi’s Mubadala, Saudi Arabia’s PIF, and Qatar Investment Authority, are taking a more prominent role in private markets.

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