The Libyan Investment Authority (LIA) is seeking to grant broad management powers to the British company Kirkoswald to handle its international portfolio, according to a report published by Africa Intelligence. The move represents one of the most significant shifts in the fund’s strategy since the imposition of United Nations sanctions on Libyan assets in 2011.
According to the report, the LIA aims to entrust Kirkoswald with the authority to manage assets valued at $68 billion, based on the fund’s 2019 valuation. The mandate under consideration would allow the British firm to act on behalf of the LIA in all matters linked to the frozen portfolio, including representation in legal, financial and administrative procedures.
Africa Intelligence noted that the LIA hopes that Kirkoswald will support a restructuring effort to transfer assets currently restricted under UN sanctions into US dollars and consolidate them into a new investment vehicle. This approach is intended to streamline future management once international restrictions are lifted.
The report adds that the LIA plans to grant the company full delegated powers, enabling it to act as the fund’s representative in procedures designed to facilitate the eventual lifting of the asset freeze. Such authority would mark a substantial shift from the fund’s previous practice of limiting external managers to narrow investment roles.
Libya’s sovereign funds have remained under UN Security Council sanctions since 2011, when measures were introduced to prevent the misuse of state wealth during the conflict. These restrictions froze tens of billions of dollars belonging to the LIA and its subsidiaries, allowing only limited management for preservation purposes and prohibiting any movement that could alter the value or structure of the holdings.
The LIA has long argued that the freeze limits its ability to preserve the real value of assets affected by inflation and fluctuating markets. Efforts to reform the fund’s management structure have intensified in recent years as Libya seeks to reassert financial stability and protect sovereign wealth for future generations.