Abu Dhabi’s McWin & sovereign wealth funds invest in restaurants

Burger King drinks

McWin’s previous engagements include Burger King Germany.

(Photo: imago/MiS)

Frankfurt The private investment company McWin has collected a total of 500 million euros for investments in European restaurant chains via a new fund. The main sponsor of the McWin Restaurant Fund (MRF) is a subsidiary of the Abu Dhabi Investment Authority (Adia).

Adia is the sovereign wealth fund of the Emirate of Abu Dhabi, which aims to help prepare the region for the post-fossil fuel era. The new fund will also look for opportunities in the German market. “Germany is an exciting market – we are definitely considering making an investment in the German market,” says Henry McGovern, co-founder of McWin, in an interview with the Handelsblatt.

If necessary, the new fund can also be increased. “We are looking for entrepreneurs with brands who want to continue to expand and who are on the same wavelength as us. After all, we know about the franchise business of the restaurant chains, also in Germany, through our involvement with Burger King Germany or Dean & David,” says the manager.

In addition to the new fund, McGovern is already on the market with the McWin Food Ecosystem Fund (EUR 300 million) and the McWin Food Tech Fund (EUR 250 million), so that a total of a good EUR 1 billion is available for investments.

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According to McGovern, the equity investment per transaction from the new fund will be at least 100 million euros. This resulted in around four to five investments. “The ratings for restaurant chains have fallen after the corona pandemic and the difficult conditions caused by the Ukraine war. For example, where 15 times the operating profit (Ebitda) used to be paid, today such multiples under ten are called up,” explains the food expert.

McCovern sees potential for optimization

Previous engagements include Burger King Germany, UK bakery chain Gail’s and restaurant chain Vapiano. Other investments include Dean & David, Cook-Unity, Perfect Day, Impossible Foods and technology companies such as Footprint, Menu, and Oishii.

McGovern and his partner Steven K. Winegar have been in the hospitality industry for many years, and they see further potential for optimization in the digital equipment of the restaurants and in innovative products such as plant-based meat substitutes. With Adia as an investor, they will now have the largest fund focused on fast food chains in Europe.

The new fund enters an investment market that is showing slight cooling-down tendencies. Financial investors have become more selective in their investment choices due to the rapid rise in interest rates and reduced borrowing capacity, according to European private equity firm Argos Wityu.

More: New opportunities in the Middle East

source site-11