Saudi Wealth Fund | As it increases its investments in the nation, the US affiliate of Saudi Arabia’s $620 billion sovereign wealth fund intends to hire a team of roughly 50 employees for its New York office.
Saudi Wealth Fund
According to persons with knowledge of the situation, USSA International, a fully owned subsidiary of the Public Investment Fund, will hire for positions in investment research, legal and compliance, as well as a chief of staff. The individuals, who requested anonymity since the material is secret, also stated that it will eventually create a team for stock trading.
The PIF, which is led by Crown Prince Mohammed bin Salman, has been actively investing in public markets as it strives to reach its goal of holding about $1.1 trillion in assets by 2030.
According to a filing, the fund oversees a US equity portfolio worth around $40 billion, which includes investments in BlackRock Inc., JPMorgan Chase & Co., and Uber Technologies. As markets were hammered by recession concerns earlier this year, it committed more than $7 billion to create fresh stakes in US stocks.
The PIF’s current buying binge in the US is similar to the fund’s early 2020 approach, when it spent billions acquiring holdings in companies whose values had been impacted by the start of the coronavirus pandemic.
During the 2008 global financial crisis, according to Governor Yasir Al Rumayyan, a close adviser to the Crown Prince, the kingdom had the chance to purchase inexpensive equities.
Despite having a US team, the PIF’s personnel in Riyadh will still be in charge of all investment decisions, according to the sources.
The fund will continue to employ intermediaries to carry out trading and has no plans to seek for a licence to trade US equities directly or through the New York branch, according to the statement. Instead, the group in New York will assist in managing deals and bridging the time gap between Saudi Arabia and the US, according to the people.
The PIF’s spokesman declined to respond.
The PIF has been buying properties abroad and setting up offices in New York, London, and Hong Kong since it changed from a domestically oriented holding firm to a global investor in 2016.
Additionally, it submitted an application for a Qualified Foreign Institutional Investor permit in China.