Sovereign wealth funds’ spending on direct investments fell last year, driven by a tendency to strike smaller deals in the technology and healthcare sectors.

Sovereign wealth funds spent $23.4bn on 224 deals in 2018, down 20% from $29.2bn invested in 235 companies a year earlier, according to a joint report from the International Forum of Sovereign Wealth Funds, the Sovereign Investment Lab at Bocconi University in Milan and consultancy firm PwC.