Adia’s returns remained stable last year as it doubles down on private equity, data-driven strategies: The Abu Dhabi Investment Authority (Adia) saw 20-year annualized rates of return remain stable at 6.3% last year, while its 30-year return improved to 7.1%, up from 6.8% in 2023, according to its latest annual review (pdf).

The sovereign wealth fund, the world’s fifth largest with more than USD 1.1 tn under management, deployed "substantial capital” into attractively priced limited partner portfolios, it said in the review. It’s adding exposure to both private credit and equity, capitalizing on demand for non-traditional assets and buying into discounted limited partner portfolios, with take-privates and carve-outs making up a significant share of transactions.

Adia marginally increased the share of assets it manages in-house to 65% in 2024, up from 64% a year earlier. Active strategies made up 54% of the portfolio last year, with 46% run passively. It also highlighted its quantitative research unit as central to how it sets and adjusts portfolio allocations.

Asset allocation bands were unchanged in 2024, with developed equities continuing to represent the largest range at 32%-42% of the portfolio, followed by private equity at 12%-17%. Emerging market equities and government bonds each accounted for 7%-15%, while financial alternatives and real estate stood at 5%-10% apiece. Small-cap equities made up 1%-5%, infrastructure and credit 2%-7% each, and cash 0%-5%. These figures are published as ranges to allow for flexibility and do not total 100%.

Regionally, North America remained the largest allocation at 45%-60%, followed by Europe at 15%-30%, emerging markets at 10%-20% and developed Asia at 5%-10%.

Looking ahead, Adia said it plans to shift in focus from building out foundational capabilities to applying data-driven investment decisions. To that end, the fund reorganized several departments and added more than 100 specialists to manage technology-led operations.

Adia is also expanding its private credit and equity exposure in 2025. A subsidiary of the fund is set to invest in Oak Hill Advisors’ European special situations strategy. It also acquired a 5.1% stake in India’s IDFC First Bank for about USD 310 mn (INR 26.2 bn) and anchored AlbaCore Capital Group’s USD 1.8 bn senior direct lending strategy. It will also commit up to USD 1.5 bn to Singapore-based GLP and USD 200 mn to India’s Micro Life Sciences, while taking a controlling interest in Alvest alongside PAI Partners.

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