Sovereign wealth funds shift towards private markets due to concentration risks

Sovereign wealth funds are pivoting towards private markets, like private equity and infrastructure, to diversify their portfolios and tap into AI-driven opportunities. This shift is driven by growing concerns about the concentration risks in public equity markets, which have become dominated by a few large companies. By moving into these private sectors, these funds aim to mitigate risks and secure better returns, signaling a broader trend of strategic rebalancing in global investment strategies.