TPG, Actis front-runners in Abraaj takeover race

dubai — US private-equity firm TPG is in exclusive talks to take over Abraaj Group’s $1 billion healthcare fund, while the UKbased Actis is the front-runner to acquire the embattled firm’s North Africa and Middle East private equity operations.

TPG is in talks with investors in Abraaj Group about taking over management of the fund’s hospitals and clinics in developing countries, according to people familiar with the matter.

Talks between investors in the fund, including the Bill & Melinda Gates Foundation, and executives at TPG are at an early stage and an agreement hasn’t been reached, the people said. TPG would likely manage the healthcare assets through its Rise fund, sources said. The TPG bid is in the wake of Matthew McGuire, a former executive at Abraaj Group, joining the firm recently.

McGuire is a partner at TPG Growth and its impact investment Rise Fund, where his focus is on emerging markets. Founded in 2007, TPG Growth invests in promising and middle-market opportunities across the US and Europe as well as in Africa and Asia. TPG Growth manages about $13. billion of assets. TPG and Actis are

$1b Abraaj Group’s healthcare fund in talks with TPG 10 Private equity firms in the race to buy some or all of the funds

among more than 10 private-equity firms that have been in the race to buy some or all of the funds managed by the floundering a Dubaibased emerging markets that once managed some $14 billion in assets. Abraaj 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.

Other top bidders in the buy out race include Canadian real-estate firm Brookfield Asset Management, Chicago-based Vistria Group, Rohatyn Group, Kuwait’s Agility Public Warehousing Co. and Abu Dhabi Financial Group.