PIF to reduce international investments to 20%; LIV golf unaffected- Reports
The governor of the Public Investment Fund (PIF) of Saudi Arabia, Yasir Al-Rumayyan, announced the reduction of the organization's international investments. However, reports indicate that LIV Golf will not be affected by these cuts.
The announcement was made this Tuesday (Oct. 29), at the Future Investment Initiative taking place in Riyadh, according to a Financial Times report cited by Golf Monthly.
This was part of what the Yasir Al-Rumayyan had to say (via Newcastle World):
"The [international investments of the fund] increased from two per cent [in 2015] all the way up to 30 per cent. Now our target is to bring it down to a range between 18 to 20 per cent."
He added:
"People used to come to us and ask for money. We are now seeing that shift from people wanting to take our money to people wanting to co-invest."
According to the report, the organization's international investments will be reduced from 30% to between 18% and 20%. The organization's international investments include stakes in sporting institutions such as Newcastle United of the English Premier League and the Aramco Team Series of the Ladies European Tour (golf).
However, The Times golf reporter Tom Kershaw reported on his X account that LIV Golf's operations will remain unaffected. Kershaw wrote:
"Understand the PIF's announcement about cutting international investment applies to future rather than existing portfolios, meaning it will not directly affect the future of LIV Golf or Newcastle United's stadium plans."
PIF has been the primary financial backer of LIV Golf from its inception to the present. Its investment in the golf league includes more than $400 million in prize money each season.
Other multi-million dollar disbursements to LIV Golf have been for player recruitment. Contracts for stars such as Brooks Koepka, Phil Mickelson and Jon Rahm have reportedly involved nine-figure sums.
What's PIF net worth?
The PIF was established in 1971 to provide financial support for projects of strategic importance to the Saudi economy. Currently (October 2024), its assets are estimated at $925 billion, making it one of the richest sovereign funds in the world.
Its portfolio of investment projects includes companies as diverse as multinational transportation company Uber and video game developers Capcom and Nexon. The Saudi fund also has stakes in the oil company Aramco and the entertainment and tourism company Qiddiya.
Its links with the world of sport have grown in recent years. In addition to its stake in Newcastle United and its investments in LIV Golf and the Aramco Team Series, PIF has invested in the Association of Tennis Professionals Tour (ATP Tour) and the Women's Tennis Association Tour (WTA Tour), starting in 2024.