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15 January 2020

ADIA plans to sell a $2 billion stake in private equity funds

The state investor is working with advisers at PJT Park Hill on the proposed transaction and plans to start marketing the deal to potential within weeks.

ADIA is estimated to have about $696 billion assets under management/iStock

by Bloomberg

The Abu Dhabi Investment Authority (ADIA) is preparing to sell around $2 billion of its stakes in private-equity funds, amid an increasing push toward direct investments by the sovereign wealth fund.

Large investors like ADIA often end up with a multitude of investments run by different private-equity managers, making them cumbersome to administer. The Gulf fund is following other major investors by taking direct stakes in firms—eschewing the fees and limitations of managed funds—to generate returns in a low-interest-rate environment.

Secondaries Investor reported in September 2019 that ADIA was considering selling an unspecified amount of private equity fund stakes.

According to the Sovereign Wealth Fund Institute, while ADIA doesn’t divulge its assets under management, it’s estimated to have about $696 billion, making it the third-largest sovereign wealth fund in the world.

Last year, ADIA was part of a consortium that acquired Nestle's $10 billion skincare business. Additionally, the Abu Dhabi state investor also partnered with private equity firms Advent International and Cinven to make a joint bid for Thyssenkrupp’s EUR 15 billion ($17 billion) elevator unit.

ADIA also teamed up with Cinven in its purchase of British scientific measurement and testing company LGC Group. In July 2019, the sovereign wealth fund agreed to buy a stake in Domestic & General Group, the UK appliance warranty provider owned by CVC Capital Partners.


RELATED STORIES: CVC Capital Partners Abu Dhabi Investment Authority Secondaries Investor Nestle Cinven PJT Park Hill





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