Sources familiar with the matter told Reuters Actis, a multi-asset emerging market investor, has been picked as the preferred bidder for the management rights of Abraaj’s Africa funds. Liquidators have began breaking up operations of The Abraaj Group, a company that was once the Middle East’s largest private equity firm.
Canada’s Brookfield Asset Management will take over Abraaj’s Turkey fund while United States-based Colony Capital will take over its Latin America fund.
Abraaj, which was a $13.6 billion emerging market specialist with more than 200 investments, got into trouble in 2017 when four investors questioned the company’s use of their money in a healthcare fund. This triggered a crisis at Abraaj and encouraged its provisional liquidation.
The fate of some of Abraaj’s other businesses remain uncertain, however, there are talks underway for another fund, Abraaj Private Equity Fund IV. Two sources noted that with the several million dollars raised in July from limited partners in the funds by the joint provisional liquidators only enough to run Abraaj’s operations for a few months, the time available to conclude the sale process is limited.
Deloitte has been hired as a provisional liquidator for Abraaj’s investment management business while PricewaterhouseCoopers is handling Abraaj Holdings.
Actis, a company founded in 2004, has raised $13 billion since inception and employs over 200 people, including a team of 100 investment professionals. It operates in growth markets across Africa, Asia and Latin America.