Spanish sovereign funds are shaping investment strategy by leaning on the United States and other global markets. From 2022 to 2023, they reached a record 5.6 billion euros in activity, a surge driven by postwar inflation and energy security concerns. The previous year saw 2.9 billion euros in deals, marking the strongest performance since 2009 when Mubadala of Abu Dhabi took a stake in Cepsa.
During this period, sovereign funds executed twelve transactions and now hold assets totaling 46 billion euros in the country, according to a joint report by ICEX and IE University in Madrid. The study analyzes the global influence of sovereign wealth funds and was released as Madrid hosted a meeting of the sovereign wealth fund community, following the acquisition of a telecommunications operator where a large stake is held by Saudi Arabia and Telefónica.
The most notable deals included the Singaporean fund GIC investing 1.5 billion euros in Azora, a company that finances rental housing across Madrid, Barcelona, Seville, Malaga, Palma de Mallorca, and Valencia. The deal also reflected other strategic moves in urban housing. Separately, the human resources startup Factorial raised 120 million dollars in a round led by GIC-backed investors Tiger and Atomico.
Mubadala executed several significant transactions in this window, including a 49 million euro investment in Healthcare Activos, a SOCIMI focused on healthcare assets, a 150 million euro acquisition related to Bra Vo student dormitories, and a 1 billion euro investment in a Cepsa biofuel facility in Huelva.
In May, Norges Bank, the world’s largest sovereign wealth fund by assets, acquired 49 percent of Iberdrola’s renewable portfolio in Spain for 650 million euros. The project targets 1,265 MW of new capacity in the coming years, split roughly 20% wind and 80% solar, spread across national territory. The study notes Norges Bank’s activity in unlisted assets beyond renewables, marking its third operation in this space, according to Javier Capapé, a writer and IE professor involved in the report.
World’s third economy
Currently, sovereign wealth funds control about 11.6 trillion dollars in assets under management, ranking as the world’s third-largest pool of capital and standing well above many national economies. Over the past decade these funds have more than doubled in value, with 2022 showing an 11% gain. Regional patterns show China increasing holdings by 11% last year and Middle East funds by 15%.
In 2022, sovereign wealth funds closed 376 global deals, totaling about 95.2 billion dollars. The momentum reflects a long-term strategy to pursue returns across technology, industrials, real estate, and healthcare sectors. As Capapé notes, the trend points toward sizable allocations in listed and unlisted assets, with a patient approach to value creation.
There are now around 70 sovereign funds worldwide, yet roughly 73% of their assets are concentrated among the top ten funds. The major players include energy-rich Gulf funds, several large Chinese vehicles, and notable investors from Singapore.
In Spain, the presence of the Joint Investment Fund (FOCO) and the Social Impact Fund (FIS) is part of a broader strategy to attract foreign capital and accelerate energy transition and social impact initiatives within the country. The FOCO and FIS are supported by a 2,400 million euro framework aimed at mobilizing investment for nationwide projects and sustainable development.
The wider narrative shows sovereign wealth funds expanding beyond traditional resources, pursuing diversified portfolios that blend energy transition, technology, and urban development. This dynamic shapes national economic strategy while aligning with global capital flows and European market integration. [Source: ICEX and IE University report on sovereign wealth funds; Madrid regional context and IFSWF engagement.]