An analysis of changes in the private equity sector. SWFs are transforming the private equity market, moving from passive investors to co-investors and direct owners. This trend is reflected in the tripling of high-value deal volume globally, surpassing $200 billion by 2025 from $67 billion in 2023.

These transactions involve important aspects: the total deal volume increase, the emergence of new players such as SWFs, and their growing position in private capital distribution. They also include GP partners, which represent an additional interest for SWFs. The SWF's direct and reverse approach significantly impacts SMEs' financial structure.

These transactions involve GP partners, who can be considered business partners, contributing to improved management and positive value creation. The increasing influence of SWFs on private equity investments can have a positive impact on SMEs, not only through their ability to provide direct capital, but also through their growing position in private capital distribution. This trend is particularly active in SWFs with 'savings-pool' or 'development' characteristics, such as Japanese, Norwegian, and Singaporean SWFs.

This change requires collaboration between SWFs and other private equity fund operators, including venture capital funds and private equity firms. This intervention should bring significant benefits to SMEs, enhancing their competitiveness and facilitating international market access. However, these changes may also bring challenges, such as the increasing competition of capital among SWFs and other private equity fund operators.

It is important to ensure that these transactions are well managed and that SWFs have the capacity to control the associated risks. In conclusion, while there are certainly challenges to overcome, the growing influence of SWFs on private equity investments represents an opportunity for SMEs to improve their competitiveness and facilitate international market access.