Abu Dhabi wealth fund in talks to buy £650m stake in pension group

Middle Eastern sovereign wealth fund Abu Dhabi Investment Authority (ADIA) is in talks to buy a stake in UK pensions giant Pension Insurance Corporation (PIC).

According to Sky News, which first reported the impending deal, ADIA is working to acquire a 21.4 per cent stake in PIC from financial services firm JC Flowers.

The deal is expected to value PIC at about £3bn and could be completed in a matter of weeks.

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The £650m deal would be one of the largest investments made by ADIA's private equity team.

If completed, the deal would be latest ownership shakeup for PIC, with Formula One racing owner CVC Capital Partners buying a minority stake in the company last year.

Other PIC shareholders include Chinese investment company Legend Holdings and Luxembourg-based investor Reinet.

Read more: FTSE 350 pension gap tumbles by £16bn in May

The pensions buyout firm oversaw nearly £26bn worth of assets last year, and reported an underlying operating profit of £195m.

JC Flowers declined City A.M.s request for comment, and a representative from ADIA could not be reached during working hours.

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