German sovereign wealth fund Kenfo will raise its private markets allocation to
30% from 25% over the next two years and reduce private equity exposure, its
annual report shows. The fund plans to expand real estate and infrastructure
holdings. Kenfo flagged recent private‑equity underperformance and said it will
adopt a more cautious stance; some investors have cut PE amid higher rates and
AI‑related challenges to software investments. Kenfo trimmed US Treasury
holdings from about €600m a year earlier to roughly €200m at end‑2025, then
added more than €500m by end‑June. CEO Anja Mikus said the fund does not plan to
stop investing in government bonds, noting yields of up to 2.8% are above many
other sovereign bonds and that it will maintain flexibility.
