A thorough understanding of this growing, but still relatively niche, area allowed the Department’s Financials team to move rapidly in early 2018, when it became aware that J.C. Flowers & Co., a major shareholder in the U.K’s Pension Insurance Corporation (PIC), was considering selling its stake.
With its knowledge of the industry and of PIC, one of the UK’s leading providers of pension insurance and bulk annuities, the ADIA team was able to move quickly to assess the opportunity and enter negotiations with the seller.
This combination of deep industry knowledge and speed of execution resulted in a wholly owned subsidiary of ADIA agreeing in June 2018 to purchase a significant minority stake in PIC’s parent company, Pension Insurance Corporation Group, from funds advised by J.C. Flowers & Co. In February 2020, the ADIA subsidiary and other long-term shareholders supported the Company by injecting GBP 750m of fresh capital, enabling PIC to significantly accelerate its growth trajectory.
The investment was consistent with the Department’s strategy of drawing on its specialist teams to pursue principal investment opportunities in market-leading businesses.
