Qatar’s sovereign wealth fund QIA and JPMorgan Asset Management on Monday said there are plans to begin a $20 billion strategic relationship spanning public and private markets in both equities and credit.
The preliminary agreement states that JPMorgan will oversee $15 billion in customized global equities portfolios for QIA.
Middle-market companies in the US will receive senior funding from QIA and the US asset manager under a $5 billion private markets program.
According to Mohammed Saif Al-Sowaidi, CEO of QIA, the partnership “will play an important role in unlocking new opportunities for both firms to generate long-term value.”
Because of the Iran war, Qatar is unable to consistently export its main source of revenue, liquefied natural gas, which is causing financial strain.
Qatar is pushing to diversify beyond its traditional reliance on energy by building up its financial sector.
While the $580 billion Qatar Investment Authority (QIA) has traditionally grown its footprint through international assets, a major strategic pivot was revealed on Sunday.
The nation’s prime minister announced a brand-new QIA arm explicitly tasked with driving local investments.
This shift toward a domestic focus follows a major global move in January, when QIA inked an expanded deal with Goldman Sachs targeting up to $25 billion in joint investments.
