Abu Dhabi: A wholly owned subsidiary of the Abu Dhabi Investment Authority (Adia) has reached an agreement to acquire up to 21.4 per cent of the shares in Pension Insurance Corporation Group from funds advised by JC Flowers &Co. The value of the deal was not disclosed.
Pension Insurance Corporation Group is the parent company of Pension Insurance Corporation (PIC), which pays the pensions of its policy holders in the UK. It has financial assets in excess of £25 billion, supporting the benefits of more than 150,000 members.
The acquisition is the latest principal investment by Adia’s Private Equities Department, across its target sectors of financial services, health care, industrials, technology, and consumer products.
In a statement, Hamad Shahwan Aldhaheri, executive director of the Private Equities Department at Adia, said the investment further demonstrates the department’s ongoing strategy to seek out principal investments in market-leading businesses with strong management teams.
“PIC has proven its ability to respond to the growing trend for UK companies to de-risk their defined benefit pension obligations and, as such, has strengthened its position as one of the industry’s leading pension insurance providers.”
Tracy Blackwell, CEO at PIC, said: “We are delighted to welcome Adia to our small group of committed shareholders with financial services expertise and long-term investment horizons. We are confident that, together, they will continue to build on the valuable support provided by J.C. Flowers over the past 12 years, and ensure that PIC is ideally placed to meet the increased demand from pension fund trustees.”
Adia was advised on the transaction by Credit Suisse, Ernst & Young, Oliver Wyman and Allen & Overy whereas JC Flowers was advised by Evercore and Paul, Weiss, Rifkind, Wharton & Garrison.
