Bank of America Loses Major Kuwaiti Sovereign Fund Investor

Bank of America has lost another key investor as the Kuwait Investment Authority (KIA)—the Gulf state’s trillion-dollar sovereign wealth fund—sold its $3.1 billion stake in the bank, Bloomberg News reported.

For Bank of America, the sale follows the recent drawdown of a much larger stake held by Warren Buffett. I Photo: Bank of America

The KIA’s relationship with the bank dates back to January 2008, when it invested $2 billion in Merrill Lynch during the financial crisis, becoming one of the investment firm’s largest backers.

Bank of America later acquired Merrill Lynch in a historic deal that same year.

The decision to offload the stake reflects a broader retreat by the KIA from financial-services investments. For Bank of America, the sale follows the recent drawdown of a much larger stake held by Warren Buffett, who has been gradually reducing his position in the bank.