AlixPartners to oversee separation of Abraaj health fund from Abraaj Group

Investors in the $1bn Abraaj healthcare fund have hired global consulting firm and turnaround specialists AlixPartners to oversee the fund’s separation from the troubled Abraaj Group.

The AGHF provides affordable, quality healthcare to under-served low and middle-income patients throughout Sub-Saharan Africa and South Asia, with performance measured by both financial returns and development impact metrics.

AlixPartners said it is working alongside the fund’s senior operational team and the provisional liquidators of Abraaj Investment Management Limited in search for a permanent replacement investment manager to manage the fund and oversee its work.

“We are delighted that investors continue to support and finance the Fund as it goes through this transition and thank management, portfolio company founders, and advisors for their assistance and support of the Fund’s mission,” said Simon Appell from AlixPartners in a statement.

AlixPartners is an American consulting firm that specialises in business turnaround work.

The AGHF owns 26 hospitals, 17 clinics as well as 32 diagnostics centres in India, Pakistan and Kenya, the fund is in the process of entering the Nigerian market.

The key investors in the $1 billion investment fund are the Bill & Melinda Gates Foundation, CDC Group as well as International Finance Corporation, Medtronic and Proparco, reported local daily, TradeArabia.

The Dubai-based private equity firm, which has around $13.6bn assets under management, earlier this year was said to have misused funds earmarked for the Abraaj Growth Markets Health Fund.

Dubai International Financial Centre Courts appointed joint provisional liquidators to oversee the winding up Abraaj’s Dubai-based entity.

The emirate’s financial services regulator the Dubai Financial Services Authority also said it had stopped the group from initiating new work or moving money to other entities.

Abraaj has denied any wrongdoing, but the allegations have caused a liquidity crisis at what was once the Middle East’s biggest private equity firm.

Meanwhile, Abraaj Group founder Arif Naqvi faces allegations of bouncing cheques to a creditor, and may be subject to an international arrest order in the short term.

Pedro Gonçalves
Pedro Gonçalves is Financial Correspondent at International Investment.

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