New bid for Abraaj fund

Arab Times - - FRONT PAGE -

ABU DHABI, Sept 15, (RTRS): 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.

Ded­i­cated

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.

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