Actis may take over Abraaj’s Africa funds
$13b Raised by Actis since its inception in 2004
dubai — The fund management rights of troubled private equity firm Abraaj are set to be broken up and transferred to investors including the UK-based Actis, sources close to investors revealed.
Investors in the Abraaj Group want to sell the embattled firm’s North Africa and Middle East private equity operations to Actis, which had made a $1 billion, instead of accepting higher offers from firms based in the region. Actis is among more than 10 privateequity firms that have been in the race to buy some or all of the funds managed by the floundering buyout firm.
Top contenders included Canadian real-estate firm Brookfield Asset Management, Chicago-based Vistria Group, Rohatyn Group, Kuwait’s Agility Public Warehousing Co and Abu Dhabi Financial Group.
Brookfield Asset Management is reportedly expected to buy Abraaj’s Turkish private equity division, while Colony Capital will likely take over Abraaj’s Latin America funds, sourc- es disclosed. Abraaj’s liquidators are also getting offers for regional operations within the unit. Actis and Abraaj’s joint provisional liquidators declined to comment.
Abraaj, a Dubai-based emerging markets investor that once managed some $14 billion in assets, came under scrutiny earlier this year when LPs (limited partners) accused the firm of using part of a $1 billion healthcare fund to pay off its own balance sheet. In mid-June, the buyout firm filed for liquidation in the Cayman Islands following multiple audits, while top executives including founder and CEO Arif Naqvi stepped down. Currently, liquidators are in the process of selling off the firm’s assets to repay creditors that are owed some $1 billion.
While PwC is working as provisional liquidator for Abraaj Holdings, Deloitte is tasked with Abraaj’s investment management business.
Actis has raised $13 billion since its inception in 2004, and employs over 200 people, including a team of 100 investment professionals. It operates in growth markets across Africa, Asia and Latin America.