Centerbridge and Gallatin Point are in advanced negotiations with Emirate funds to enter Phoenix’s controlling stake
NEW YORK–(BUSINESS WIRE)–Centerbridge Partners and Gallatin Point Capital, which hold 33.44% of The Phoenix Group, are in advanced negotiations with Emirate funds, led by ADQ, to enter Phoenix’s controlling stake. The Emirate funds are expected to buy 25-30%, partnering with Gallatin Point, who will remain a joint control shareholder and continue its participation on the Phoenix Board of Directors. Phoenix’s key management members are also expected to buy an increased share of the company’s stock (1-2%) on the same terms, expressing their confidence in the company’s future.
The term sheet signed today is an important step for Phoenix’s continued position as Israel’s leading financial services group. Over the last three years, the company has benefitted from Centerbridge and Gallatin’s joint control as well as the leadership of CEO Eyal Ben Simon and the Chairman Benny Gabbay. The contemplated transaction ensures the continuity of a current control shareholder and the long-term economic alignment of management. In addition, it creates new capabilities and opportunities from first-rate international investors. Taken together, the combination of continuity and opportunity is exciting for all of Phoenix’s stakeholders, including shareholders, clients and the Israeli public at large.
The transaction will be subject to regulatory approvals, which will include a control permit from the Capital Market, Insurance and Savings Authority. Initial advance notice regarding the term sheet was given to the regulator. The consortium will submit its application to the regulator in due time and expects the application will be subject to the legally mandated examination procedure.
Centerbridge and Gallatin Point said today that they are excited to bring in like-minded sophisticated investors to help further develop and grow The Phoenix Group both regionally and internationally. “This transaction represents a vote of confidence in the company, the Israeli market, and the long-term potential and outlook of the industry. Together with the new investors and local board members we will continue to work in full cooperation with Phoenix’s management to help Phoenix retain and expand its role as the industry leader and to help it attain even greater success in the future.”
Established in 2018, ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises. Its investments span key sectors of the UAE’s diversified economy including energy and utilities, food and agriculture, financial services, healthcare and life sciences, and mobility and logistics, amongst others. As a strategic partner of Abu Dhabi’s government, ADQ is committed to accelerating the transformation of the Emirate into a globally competitive and knowledge-based economy.
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines—private equity, private credit and real estate—in an effort to develop the most attractive opportunities for our investors. The firm was founded in 2005 and, as of September 30, 2022, has approximately $36 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies. For more information, please visit centerbridge.com.
About Gallatin Point:
Gallatin Point Capital LLC is a private investment firm with a primary focus is on making opportunistic investments in financial institutions, services and assets. Gallatin Point aims to form highly collaborative partnerships with its investors and with management teams of its portfolio companies, seeking to combine the right capital with the right managerial competencies in order to maximize the outcome for all stakeholders. More information about Gallatin Point can be found at www.gallatinpoint.com.