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Peter Harf, chair and managing partner of Europe’s JAB Holdings, is retiring after over four decades as the investment group diversifies from its consumer-focused portfolio. The 78-year-old German executive will be succeeded by managing partners and co-chief executives Joachim Creus and Frank Engelen, as announced by JAB on Monday. Creus will assume the role of chair, while Engelen will become vice-chair.
Harf’s retirement concludes a 40-year career during which he emerged as one of Europe’s leading dealmakers, transforming the heirs of the Reimann family into billionaires. He is acknowledged for evolving an unremarkable German chemicals company, owned by the Reimanns, into a formidable conglomerate with significant stakes in global consumer brands such as Keurig Dr Pepper, Pret A Manger, Krispy Kreme, and JDE Peet’s.
In addition to managing the Reimann family’s wealth, including investments in consumer brands, JAB’s partners sought capital from other affluent families and endowments, facilitating a dealmaking spree surpassing $50 billion.
However, JAB’s heavy dependence on consumer brands was hit hard by significant behavioral shifts during the pandemic and the inflationary surge that followed, affecting consumer spending power. The group recently reported a $10.1 billion reduction in the value of its portfolio last year, with investments in coffee, bakeries, and beauty experiencing dramatic markdowns. Overall, the fair value of JAB’s investments in its subsidiaries fell 24 percent to $39 billion.
JAB previously expressed confidence that the strong operational performance of its portfolio would lead to a valuation re-rating in the medium to long term. The company is now aggressively diversifying into life insurance and asset management to secure more reliable income streams. A representative for the Reimann family noted that Creus and Engelen have laid out a strategic vision to position JAB for sustainable long-term growth.
The spokesperson added that the pair had launched a new life insurance division and completed their first acquisition in the sector in the past year. The deal for Prosperity Life, which manages $25 billion in assets, valued the insurer at over $3 billion.
Despite the shift in focus, JAB continues to hold significant stakes in consumer companies, including beauty group Coty and Panera Brands, which operates bakeries and coffee shops.
On Monday, the company stated that Harf will remain “fully invested” in the firm and continue as chair of the Reimann family’s non-profit entity, the Alfred Landecker Foundation. Harf expressed gratitude to the Reimann family for entrusting him with the responsibility over 40 years ago, stating it is now time to hand over leadership to a new generation.