According to the statement, the Emirate funds are expected to buy a 25-30% stake in the financial services firm.
Centerbridge Partners and Gallatin Point together hold a 33.44% stake in Phoenix, which offers asset management, and investment services besides insurance.
The ADQ-led investors will be partnering with Gallatin Point for the acquisition of the stake.
Private investment firm Gallatin Point will remain a joint control shareholder and continue its participation on the Phoenix board of directors, the statement read.
The deal’s terms were not disclosed by the companies.
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According to a Bloomberg report, UAE funds will be paying approximately $855m for the stake in the Israeli company.
Phoenix is a publicly traded firm on the Tel Aviv stock exchange with a $2.85bn market value.
Key executives at Phoenix are also anticipated to purchase 1%-2% of the company’s equity under the same conditions.
In a joint statement, Centerbridge and Gallatin Point said: “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.”
The transaction is subject to regulatory approvals, which include a control permit from the Capital Market, Insurance and Savings Authority.
According to a source familiar with the transaction, ADQ is buying Centerbridge’s stake in Phoenix in a non-binding agreement that might take months to close after receiving shareholder and regulatory clearances, reported Reuters.