In a world rife with uncertainty, private equity — a preferred asset class for Gulf sovereign wealth funds — endures.The long-term asset class is showing resilience in 2025 with investors saying they plan to maintain or only modestly adjust their allocations, according to US investment bank Houlihan Lokey. The Abu Dhabi Investment Authority — the first in the Gulf to surpass $1 trillion in assets under management — said in November that it’s boosting its share in private markets.

Investors in the region typically back the top managers, but that may need to be revisited as deal activity slows. Middle Eastern institutional investors could stand to gain from investing in smaller deals that could be more insulated from big macroeconomic swings, a Houlihan Lokey director said.