Tell Group is offering $25 million to transfer the management of seven Abraaj funds to a new entity that would be 20 per cent owned by Tell and 80 per cent by Abraaj’s unsecured creditors.
Wednesday 19, June 2019
(Bloomberg) --Tell Group, a boutique investment firm founded by former UBS Group banker Yassine Bouhara is bidding to acquire funds managed by the collapsed Abraaj Group.
Unsecured creditors, such as Air Arabia and a Kuwaiti pension fund, would become shareholders in the new company through a debt-for-equity swap and Abraaj management would not be involved in the new firm.
Until last year, 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.
The Dubai-based firm, which managed almost $14 billion, was forced into liquidation after a group of investors, including the Bill & Melinda Gates Foundation, commissioned an audit to investigate the alleged mismanagement of money in its health-care fund.
US prosecutors have so far charged six former executives of Abraaj for multiple counts including fraud and conspiracy. Founder Arif Naqvi was last month released from custody in London, almost a month after being granted a record GBP 15 million ($19 million) conditional bail.