An Abu Dhabi sovereign wealth fund is looking to snap up at a discount Western investors' stakes in funds managed by Hong Kong-based PAG, the London-based Financial Times reported on Tuesday.

PAG operates as an alternative investment firm managing more than $55 billion. Its investors include state pension schemes in California, Texas, Florida and Iowa as well as investment funds in Canada, Australia and across Europe. The Blackstone Group acquired a minority stake in 2018.

The move from the Abu Dhabi Investment Authority (ADIA) is a sign of how some Gulf investors are looking to pick up bargains as US investors cut their China exposure, the FT said citing people with knowledge of the matter.

Under the deal, ADIA, which has a long-standing relationship with PAG, would offer to buy investors’ stakes in PAG funds at a discount, in a transaction that the buyout firm would facilitate. The investors could choose whether to sell their stakes, FT said.

(Writing by Brinda Darasha; editing by Seban Scaria)