Carlyle Group and Trustar Capital are seeking a partial exit from McDonald’s Corp.’s operations in Hong Kong and mainland China, people familiar with the matter said, in a deal that would raise $4 billion, reports Bloomberg. GIC Pte and Mubadala Investment, the Abu Dhabi sovereign wealth fund, have been approached about the deal that values the entire business at up to $10 billion including debt, the people said. Shareholders have agreed to the plan, and the asset managers aim to finalize an agreement with investors in the fourth quarter, they said, asking not to be identified discussing private matters.
The private equity firms are setting up a new vehicle to provide a partial exit for existing investors while attracting fresh capital to fuel restaurant growth. Rolling over assets into a new fund has become an increasingly popular way for buyout firms to generate liquidity for their investors after volatile public markets and spiking interest rates made exits harder over the past 18 months.
The fast-food chain aims to increase its stores to 10,000, leveraging the capital and other resources from shareholders as it capitalizes on sustainable growth in China, a spokesperson said in response to Bloomberg’s inquiry.