As global energy markets undergo a profound transformation, the role of long-term institutional investors in shaping sustainable energy futures has become increasingly strategic. This thesis investigates how Sovereign Wealth Funds (SWFs) and Private Equity (PE) funds approach energy investments, with the aim of identifying investment rationales, structural differences, and potential best practices. To this end, it adopts a dual-framework methodology: the Nine- Dimension SWF Assessment Framework, which offers a comprehensive view of institutional structure and strategic orientation, and the IRFA Taxonomy (Investor Objective, Resource Fit, Advantage Clusters), used to classify over 1,500 energy transactions based on investment objective, resource alignment, and context-specific advantages. Applying these frameworks, the study compares three major SWFs (Norway’s GPFG, Saudi Arabia’s PIF, and Abu Dhabi’s ADIA) with three leading PE firms (Blackstone, Carlyle, and KKR). The results show that certain SWFs, for example those from Saudi Arabia, adopt a broader investment logic, termed ecosystem architecture, that enables them to align with national development priorities and influence policy frameworks to generate long-term value. Rather than shaping policies, these funds operate as instruments embedded within national strategies, amplifying their developmental reach and economic footprint over extended horizons. In contrast, PE funds typically function as agile financial actors that navigate existing policy environments but remain external to them. Their approach is predominantly financially driven, characterized by high-return targets, clear exit horizons, and limited interaction with broader policy goals. This distinction reveals how SWFs, in select cases, can achieve not only strategic alignment but also superior financial performance compared to PE benchmarks. The thesis highlights how governance structures, policy contexts, and resource endowments critically shape investment outcomes. In giga-scale energy platforms and integrated national projects, SWFs demonstrate distinct advantages in navigating political and regulatory complexity, underscoring their unique and growing role in the global energy transition.
Con la profonda trasformazione in atto nei mercati energetici globali, il ruolo degli investitori istituzionali di lungo termine nello sviluppo di un futuro energetico sostenibile si fa sempre più strategico. Questa tesi analizza in che modo i Sovereign Wealth Funds (SWF) e i fondi di Private Equity (PE) affrontano gli investimenti nel settore energetico, con l’obiettivo di identificare logiche di investimento, differenze strutturali e potenziali best practice. A tal fine, viene adottato un doppio approccio metodologico: il Nine-Dimension SWF Assessment Framework, che offre una visione completa della struttura istituzionale e dell’orientamento strategico dei fondi sovrani, e la IRFA Taxonomy (Investor Objective, Resource Fit, Advantage Clusters), utilizzata per classificare oltre 1.500 transazioni energetiche sulla base dell’obiettivo d’investimento, dell’allineamento geografico e delle condizioni di vantaggio contestuale. Applicando questi framework, lo studio confronta tre importanti SWF (GPFG della Norvegia, PIF dell’Arabia Saudita e ADIA di Abu Dhabi) con tre primari fondi PE (Blackstone, Carlyle e KKR). I risultati mostrano che alcuni SWF, ad esempio quelli provenienti da Arabia Saudita, adottano una logica d’investimento più ampia, definita ecosystem architecture, che consente loro di allinearsi con le priorità di sviluppo nazionale e di influenzare i quadri normativi già esistenti per generare valore di lungo periodo. Più che plasmare le politiche, questi fondi agiscono come strumenti integrati nelle strategie statali, ampliando la propria portata economica e lo sviluppo territoriale su orizzonti di lungo periodo. Al contrario, i fondi di PE operano tipicamente come attori finanziari che si muovono all’interno di ambienti normativi già definiti, ma restando esterni a essi. Il loro approccio rimane prevalentemente guidato da logiche finanziarie, caratterizzato da obiettivi di rendimento elevato, orizzonti di uscita ben definiti e un'interazione limitata con le politiche pubbliche. Questa distinzione evidenzia come gli SWF, in alcuni casi, riescano a ottenere non solo un allineamento strategico ma anche performance finanziarie superiori rispetto ai benchmark dei PE. La tesi mette in luce come strutture di governance, contesti normativi e l’allineamento geografico influenzino in modo determinante gli esiti degli investimenti. In sistemi energetici di grandi dimensioni e progetti nazionali, gli SWF mostrano vantaggi distintivi nella gestione della complessità politico-regolatoria, confermando il loro ruolo strategico e crescente nella transizione energetica globale.
Analysis of SWFs' strategies in the energy sector: a comparison with private equity investments
Codutti, Matteo
2024/2025
Abstract
As global energy markets undergo a profound transformation, the role of long-term institutional investors in shaping sustainable energy futures has become increasingly strategic. This thesis investigates how Sovereign Wealth Funds (SWFs) and Private Equity (PE) funds approach energy investments, with the aim of identifying investment rationales, structural differences, and potential best practices. To this end, it adopts a dual-framework methodology: the Nine- Dimension SWF Assessment Framework, which offers a comprehensive view of institutional structure and strategic orientation, and the IRFA Taxonomy (Investor Objective, Resource Fit, Advantage Clusters), used to classify over 1,500 energy transactions based on investment objective, resource alignment, and context-specific advantages. Applying these frameworks, the study compares three major SWFs (Norway’s GPFG, Saudi Arabia’s PIF, and Abu Dhabi’s ADIA) with three leading PE firms (Blackstone, Carlyle, and KKR). The results show that certain SWFs, for example those from Saudi Arabia, adopt a broader investment logic, termed ecosystem architecture, that enables them to align with national development priorities and influence policy frameworks to generate long-term value. Rather than shaping policies, these funds operate as instruments embedded within national strategies, amplifying their developmental reach and economic footprint over extended horizons. In contrast, PE funds typically function as agile financial actors that navigate existing policy environments but remain external to them. Their approach is predominantly financially driven, characterized by high-return targets, clear exit horizons, and limited interaction with broader policy goals. This distinction reveals how SWFs, in select cases, can achieve not only strategic alignment but also superior financial performance compared to PE benchmarks. The thesis highlights how governance structures, policy contexts, and resource endowments critically shape investment outcomes. In giga-scale energy platforms and integrated national projects, SWFs demonstrate distinct advantages in navigating political and regulatory complexity, underscoring their unique and growing role in the global energy transition.File | Dimensione | Formato | |
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https://hdl.handle.net/10589/240487