The head of one of the world’s largest sovereign wealth funds has delivered a clear message to the private equity sector.
Sheikh Saoud Salem Al-Sabah, Managing Director of the $1 trillion Kuwait Investment Authority (KIA), says the industry must act now.
Speaking at the Qatar Economic Forum in Doha on Wednesday, Sheikh Saoud said time is running out.
He stressed that the private equity capital return cycle is overdue and that investor patience is wearing thin.
According to Sheikh Saoud, many firms spent the last decade underwriting deals without realistic exit plans.
He warned that such practices are no longer sustainable under current market pressures.
“The opportunities in private equity are in secondaries and special situations,” Sheikh Saoud said during the panel.
He added that urgency is growing due to the private equity capital return obligation to limited partners (LPs).
KIA’s top executive emphasized that funds need to refocus on delivering liquidity.
He stated that current macroeconomic shifts demand greater accountability and transparency from general partners.
During the panel discussion, Sheikh Saoud also criticized the industry’s complacency over the past five to ten years.
“Private equity got away with it for too long,” he told fellow panelists.
Now, as interest rates remain elevated and IPO markets stall, pressure mounts on buyout firms to exit deals.
Investors are increasingly asking when they will see distributions from aging portfolios.
Sheikh Saoud believes the most compelling opportunities lie in distressed assets and secondary markets.
He argued that firms must pivot from growth narratives to private equity capital return strategies.
Industry insiders note that sovereign wealth funds like KIA are reassessing their exposure to long-dated, illiquid assets.
Many now seek faster cycles and clearer exit paths when allocating capital.
As Sheikh Saoud made clear, the era of delayed exits is over.
The focus has firmly shifted to the private equity capital return mandate from LPs worldwide.
