Adia from Abu Dhabi invests in the food industry fund McWin and Taibang Biologic from China

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The Abu Dhabi Investment Authority, the emirate’s sovereign wealth fund, has led rounds of financing by European restaurant investment firm McWin and Chinese biopharmaceutical company Taibang Biologic Group.

Adia is the primary limited partner of the McWin Restaurant Fund, which has secured initial funding commitments of €500 million ($512 million) for restaurant investments, the private investment firm said in a statement Tuesday.

The fund is being launched by food industry investors Henry McGovern and Steven Winegar, who have backed brands including Italian restaurant chain Vapiano and British bakery Gail’s.

The transaction brings McWin’s total capital under management, which manages a €250 million FoodTech fund and a food ecosystem fund, which will close at €300 million in the third quarter, to more than €1 billion.

The McWin Restaurant Fund, backed by Adia, will focus on larger investments with a ticket size of at least 100 million euros, according to the statement.

“We view the partnership with Adia as a long-term strategic relationship to unlock sustainable, long-term value across the hospitality industry,” said Henry McGovern, co-founder of McWin.

“Our operational experience and hands-on approach is the perfect value proposition for national brands that want access to a pan-European platform to scale their operations and grow beyond their borders.”

Adia, which invests on behalf of the Abu Dhabi government, was established in 1976 and invests directly and indirectly in a variety of asset classes including equities, fixed income, infrastructure, private equity and real estate.

Adia subsidiary Platinum Orchid also led a financing round by China’s Taibang Biologic Group along with Singapore’s sovereign wealth fund GIC.

The biopharmaceutical company raised US$300 million ($216.5 million) from a group of investors that included state-owned China Life Private Equity Investment and Cinda Kunpeng (Shenzhen) Investment Management Company.

Taibang Biologic manufactures and sells plasma-derived products and other biopharmaceuticals, according to its website. Founded in 2002, the company listed on the Nasdaq Stock Exchange in 2009 before completing its approximately $4.8 billion privatization in April 2021.

Proceeds from the financing round backed by Adia will help optimize the group’s capital structure, solidify its position in the domestic market, expand its plasma stations and expand new product research and development, Taibang Biologic said.

This will enable the group to achieve “faster and more sustained growth” in the Chinese market, the statement said.

The latest round of financing is Taibang Biologic’s first equity financing since the completion of its privatization last year by a consortium led by Chinese private equity firm Centurium Capital.

Last year, Adia, one of the world’s largest sovereign wealth funds, said it was well positioned to capitalize on future investment opportunities after successfully weathering headwinds caused by the Covid-19 pandemic.

Adia’s 30-year annualized yield reached 7.2 percent on a point-to-point basis at the end of 2020, compared to 6.6 percent in 2019, according to its 2020 annual report. The 20-year annualized yield rose from 4, 8 percent in 2019 to 6 percent.

Updated August 02, 2022 2:43 p.m

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