New York – EcoPulse24

Fawaz Al-Mubarak (66) will step down as CEO of Wafra Inc. at the end of 2025, concluding nearly a decade of leadership at the U.S. asset management firm wholly owned by the Kuwait Public Institution for Social Security (PIFSS), as confirmed by a company spokesperson to Bloomberg on Friday.

Fergus Healy, the current COO, will assume the role of interim CEO, according to the official announcement. Healy, who joined Wafra in 2014, has over 30 years of experience in alternative fund management and previously served as CEO of Meridian Fund Services.

Wafra: A Global Investment Arm with $29 Billion in Assets

Wafra Inc. was established in 1985 as a registered investment advisor in New York and currently manages approximately $29 billion across a wide range of investment strategies, including:

• Private equity and venture capital
• Real assets: Aviation, digital infrastructure, maritime shipping, renewable energy
• Alternative and traditional real estate
• Strategic partnerships: Minority investments in 23 global asset managers, including a recent investment in French Ardian (with $192 billion in assets) in November 2024

The company primarily operates in the U.S., European, and Asian markets and is known for its unique model of acquiring stakes in asset management firms.

Al-Mubarak's Career: 34 Years at Wafra

Fawaz Al-Mubarak joined Wafra in 1991, holding various positions starting as a portfolio analyst specializing in European markets before becoming CEO. He holds a Bachelor of Science in Economics from Kuwait University and began his career as an analyst in portfolio management at the Public Institution for Social Security.

During his leadership, Wafra experienced significant strategic expansion, including:

• Launch of Capital Constellation (2018): A joint platform with global funds (Alaska Permanent Fund, Railpen, NYSCRF, OCERS) to finance alternative asset management firms
• Signing the UN Principles for Responsible Investment (UNPRI) in 2016
• Establishment of the Sustainable Investment Group (2018) focusing on integrating ESG standards

Sustainability and Renewable Energy: A Clear Environmental Footprint

Wafra adopts a comprehensive approach to integrating environmental, social, and governance (ESG) standards, with direct investments in:

Renewable energy: within the real assets portfolio
Green buildings: targeting LEED certifications in the real estate portfolio
Operational efficiency: programs to reduce energy, water, and waste consumption

The company is classified as an **"ESG innovator in due diligence"** according to the 2021 Private Equity International report and provides practical guidance for asset managers in integrating sustainability standards.

Context of Departure: Investment Environment in 2025

Al-Mubarak's departure comes amid:

• Ongoing high interest rate environment and its impact on the valuation of alternative assets
• Restructuring of global pension funds for long-term strategies
• Acceleration of the shift toward sustainable investing in the Gulf and Middle East

Wafra has not yet announced the name of the permanent CEO, but observers are watching to see if the incoming management will continue Al-Mubarak's focus on alternative investments and strategic partnerships or will recalibrate priorities in response to global economic shifts.

The Environmental Angle: Lessons Learned

Al-Mubarak's departure raises a broader question about how Gulf pension funds manage climate risks in their long-term portfolios. Wafra's model of integrating ESG - especially in renewable energy and sustainable infrastructure - provides a potential roadmap for regional institutions seeking sustainable returns in an era of energy transition.

With increasing regulatory pressures and social expectations surrounding responsible investing, Al-Mubarak's successor will face the challenge of balancing financial returns with environmental responsibility in a changing economic landscape.