The Kuwait Investment Authority (KIA) is looking to invest as much as $5 billion in infrastructure assets in the UK, in the next five years according to the Financial Times.
As the State of Kuwait’s sovereign wealth fund, KIA is targeting and planning on how to increase returns and keep interest rates lowered by investing into strong regulated infrastructure projects, according to Managing Director Bader Al-Saad.
The plan came up just after the KIA failed last month 5.3 billion takeover offer for the British water utility Severn Trent.
“We are looking at brownfield projects because of the cash flow streams and to diversify our portfolio, as we don't think there is any money to make in fixed income, because of the zero interest rates,” Mr Saad stated. “Development is a different ball game, we are not developers. We are providers of long-term capital.”
The Kuwait Investment Authority is recognized as one of the largest sovereign wealth funds in the world with over $400 billion worth of assets under its management.
