Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has emerged as a significant player in both the U.S. public and private markets. Unlike most American funds, the PIF is not obligated to disclose its holdings in these markets. However, during the recent PGA-LIV merger hearings, a previously undisclosed list of the fund’s top public equity holdings, valued at approximately $35.5 billion, was made public. This list reveals that the PIF has placed strategic bets on experiential offerings, spanning the realms of gaming and in-person entertainment.
As of March 31, the updated list indicates that the PIF holds a staggering $8.9 billion stake in Lucid, an electric automaker. This investment constitutes around 25% of the PIF’s equity holdings, with the fund controlling approximately 60% of Lucid’s outstanding shares. Following closely behind, the PIF’s second-largest stake is in Activision Blizzard, valued at $3.3 billion, accounting for 9.1% of its public equity holdings. The value of Activision Blizzard’s shares rose by over 10% during midday trading on Tuesday as a judge denied the Federal Trade Commission’s request to delay Microsoft’s acquisition of the company.
Descending in order of size, the PIF’s other notable corporate holdings include Electronic Arts ($2.98 billion, or 8.4% of its portfolio), Uber ($2.3 billion, or 8.4%), Take-Two Interactive Software ($1.36 billion, or 3.8%), and Live Nation ($880 million, or 2.5%).
PIF’s Tech Exposure and Overweight Positions
Analyzing the PIF’s tech exposure in relation to the Nasdaq reveals interesting findings. The PIF’s $691 million stake in Meta accounts for approximately 1.9% of its total public market allocation, whereas the stock’s weight in the S&P is 2.87%. This indicates that the PIF is slightly underweight in Meta compared to its weighting in the broader market.
In contrast, Google, which comprises 2.87% of the Nasdaq by weight, represents only 1.2% of the PIF’s $35.51 billion public portfolio. It is worth noting that the PIF holds overweight positions in other tech giants such as Booking Holdings, Take-Two, Uber, and Zoom.
Saudi Arabia has become a favored destination for venture capital and private equity firms due to its privileged access and the attention it receives. These firms are eager to tap into the kingdom’s deep pockets as it diversifies its investments away from traditional oil and gas sectors. Crown Prince Mohammed bin Salman is leading this transformation, directing the PIF to explore new avenues for growth and investment.
In summary, the PIF’s recent disclosure of its top public equity holdings sheds light on its significant investments in experiential offerings. With a focus on gaming and in-person entertainment, the PIF has strategically positioned itself in companies such as Lucid and Activision Blizzard. Furthermore, its tech exposure demonstrates a mixture of underweight and overweight positions relative to the broader market. As Saudi Arabia continues to diversify its investments, the PIF’s role in shaping the kingdom’s economic future remains crucial.
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