Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
September 16, 2018

Abu Dhabi Financial Group offers revised bid for Abraaj’s ME funds


September 16, 2018

ABU DHABI: Abu Dhabi Financial Group (ADFG) has submitted a revised bid to acquire the management rights for the Middle East funds of stricken Dubai-based Abraaj, according to a document seen by Reuters.

The Abu Dhabi-based alternative investment firm is among more than a dozen bidders seeking to buy the bulk of Abraaj’s private equity funds.

But in a letter to investors in Abraaj Funds, ADFG said that the bid is unlikely to materialise given the “convolution” of the situation.

To address this, ADFG is seeking a dedicated budget to conduct a full forensic audit and a litigation budget. Its new offer includes up to $6 million for the audit and litigation financing as well as a $10 million credit facility to fund the operations of the Middle East funds.

The $10 million is in addition to $10 million earmarked separately for the fund manager’s liabilities.

“Such a dedicated budget is crucial not only to seek damages from previous management but also to ensure recoverability of funds for investors in the Middle East funds,” ADFG said in the letter seen by Reuters.

“This means there is a zero capital call requirement from all the 200 unique investors in the Middle East funds which will clear one of the major hurdles going forward for the protection of the assets.”

Abraaj has 10 Middle East funds involving some 200 investors from across the globe.

Abraaj filed for provisional liquidation in the Cayman Islands in June after months of turmoil related to a row with investors over the use of their money in a $1 billion healthcare fund.

Last month Reuters reported that Actis had bid to buy the bulk of Abraaj’s private equity funds, joining more than a dozen other bidders.

Bloomberg earlier reported tthat the group’s fund unit, which managed about $14 billion at its peak and was one of the most influential emerging market investors, received a bid from private equity firm Actis for $1.

Chicago-based Vistria Group, Rohatyn Group, Kuwait’s Agility Public Warehousing Co. and Abu Dhabi Financial Group also made offers for the floundering Middle Eastern buyout firm’s business.

Abraaj’s liquidators are also getting offers for regional operations within the unit, the people said. Colony Capital Inc., whose earlier bid for Abraaj’s entire fund business was rejected, made an offer for its Latin American operations, while Helios Capital Management is bidding for the Africa platform.

NBK Capital, the investment banking unit of National Bank of Kuwait, made an offer for Abraaj’s Middle East and North Africa business.

London-based investment firm Centricus, run by co-founders Nizar Al-Bassam and Dalinc Ariburnu, made an offer to buy the Turkish and South East Asian portions of the business, two of the people said. Brookfield Asset Management may also be interested in parts of the unit, the people said.

No final decisions have been made and the unit has received offers from other bidders, too.

Representatives for Vistria and Rohatyn didn’t immediately respond to requests for comment. Agility said it has submitted “a conditional non-binding offer” to acquire one of Abraaj’s units. Representatives for Abraaj’s liquidators, Actis, Helios, ADFG, Brookfield, NBK, Colony and Centricus declined to comment.

Topstory minus plus

Opinion minus plus

Newspost minus plus

Editorial minus plus

National minus plus

World minus plus

Sports minus plus

Business minus plus

Karachi minus plus

Lahore minus plus

Islamabad minus plus

Peshawar minus plus