Private Equity Is Troubled, $1 Trillion Kuwait Fund’s Boss Warns

The head of one of the world’s largest sovereign wealth funds said the clock is ticking for private equity and joined the chorus of investors who’ve grown worried about the industry’s valuation practices.

The industry has struggled to return money to investors for years, said Sheikh Saoud Salem Al-Sabah, managing director of the $1 trillion Kuwait Investment Authority. While that’s mostly been due to a lack of deals and initial public offerings, Sheikh Saoud said some firms were underwriting deals at valuations that they would struggle to exit.

“Private equity is very troubled, I believe, especially ...