Last week, London-based Actis got the 75 per cent of investor support required to take over the $1.6 billion Abraaj Private Equity Fund IV and the $990 million Africa Fund III.
Thursday 04, July 2019
Actis has received investor approval to take over two funds which were being managed by Abraaj Group, clearing a major hurdle for the emerging-market investor to complete a deal.
Until last year, Dubai-based Abraaj was the Middle East’s biggest private equity fund and one of the world’s most influential emerging-market investors, with investments across Africa, Asia as well as Latin America and Turkey.
At its peak, Abraaj managed $14 billion of assets but was forced to file for insolvency last year after being accused of misusing investor funds and six of the company’s former executives now face racketeering and securities-fraud charges in the US.
The Abraaj Private Equity Fund IV has been identified by US prosecutors as one of several in which money was misused to cover liquidity shortfalls elsewhere in the group.
Liquidators have been trying to sell Abraaj funds with mixed success. Colony Capital acquired Abraaj’s Latin American operations earlier this year and TPG took over the health fund, while sales of funds in Turkey, the Middle East and Africa are ongoing.
Actis has been working with Abraaj’s liquidators since last September to take over five funds, including Abraaj’s North Africa fund, reported Bloomberg.