Abraaj fund unit that managed $14bn gets $1 bid

The fund unit of the embattled private equity firm Abraaj Group, which once managed about $14 billion, reportedly received a $1 dollar bid from Actis.

Private equity firm Actis is among more than 10 private-equity firms that are in the race to buy some or all of the funds managed by the floundering buyout firm.

Top contenders 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, Bloomberg reports.

Abraaj’s liquidators are also getting offers for regional operations within the unit, people familiar with the matter said.

Colony Capital, whose earlier bid for Abraaj’s entire fund business was rejected, made an offer for its Latin American operations, while Helios Capital Management is bidding for the Africa platform, they said.

NBK Capital, the investment banking unit of National Bank of Kuwait, made an offer for Abraaj’s Middle East and North Africa business.

Abraaj filed for provisional liquidation in the Cayman Islands in June after months of turmoil linked to a row with investors over the use of their money in a $1bn healthcare fund.

Abraaj’s liquidators, Deloitte and PwC, plan to present offers to limited partners and choose buyers by Friday, the sources told Bloomberg.

It has been reported that Dubai’s Abraaj  was found to have borrowed money from its own funds to meet operating expenses ahead of its collapse.

Pedro Gonçalves
Pedro Gonçalves is Financial Correspondent at International Investment.

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