Sovereign wealth fund the Abu Dhabi Investment Authority (ADIA) is set to acquire a 21.4% stake in UK insurer the Pension Insurance Corporation (PIC).
The deal, which is still subject to regulatory approval, will see ADIA acquire the stake from investment firm JC Flowers for an undisclosed fee.
US-based JC Flowers has owned a share in PIC for 12 years and has been looking for a buyer for most of 2018.
ADIA aims to develop a private equity portfolio worth between 2% and 8% of its total holdings, according to its 2017 annual statement.
Of particular interest to ADIA, said executive director Hamad Shahwan Aldhaherib, is PIC’s “proven ability to respond to the growing trend for UK companies to de-risk their defined benefit pension obligations”.
©2018 funds global mena