So I see that Abraaj Group, previously the largest private equity firm in the Middle East, is struggling to keep afloat, amid allegations that some of the funds have been mismanaged.
This is a turnaround, especially from the times when it was sponsoring Art Dubai. Indeed it was sponsor of the main art prize, to support contemporary artists of the Middle East, North Africa and South Asia.
Now, it appears not to have the prestige that it once did.
I was working on Khaleej Times, from where the article below came, and then on mergermarket, part of the Financial Times Group, and was covering a great deal on private equity. And here’s an article from Arabian Business that explains the background.
Filed on July 5, 2018 | Last updated on July 5, 2018 at 04.09 pm (Khaleej Times)
A UAE court on Thursday adjourned a ruling against the founder of Abraaj.
A lawyer for the founder of embattled Dubai-based private equity group Abraaj said Thursday it is close to an out-of-court settlement in a case over bounced cheques for millions of dollars.
“Parties have reached an understanding last night. Now, they will put it in a document,” said Arif Naqvi’s lawyer, Habib al-Mulla.
“A provisional agreement has been reached ... over the main issues to repay the loan,” Mulla, the chief executive of law firm Baker McKenzie Habib Al Mulla, told AFP.
Essam al-Tamimi, a lawyer for creditor United Arab Emirates businessman Hamid Jaafar, confirmed the negotiations but without giving details.
A UAE court on Thursday adjourned a ruling against the Pakistani founder of Abraaj, the region’s largest private equity firm, to allow a settlement, sources familiar with the case said.
A ruling has been postponed until July 11 against Naqvi, who faces up to three years in jail for issuing three cheques worth $300 million without having sufficient funds in the bank.
Financier Naqvi, 57, is currently outside the UAE after the public prosecutor issued a warrant for his arrest.
The bounced cheques case is one of several woes facing Naqvi’s group.
Founded in 2002 by Naqvi, Abraaj had nearly $14 billion of assets under management before being granted a court-supervised restructuring last month in the Cayman Islands, where it is registered, following allegations of the misuse of funds.
The Cayman Islands court appointed liquidators to oversee an “orderly restructuring” of the group.
Four key investors in a $1-billion healthcare fund managed by Abraaj, including Bill and Melinda Gates and a World Bank affiliate, have demanded an inquiry into allegations that money from the fund had been misused.
That in turn triggered investor demands for their funds to be returned. Abraaj had the funds to repay secured investors but could not repay unsecured investors.
Turkish drugmaker hires Barclays for sale after Abraaj deal collapse
4 July; Arabian Business
Sources say Turkish businessmen Ahmet and Zafer Toksoz are considering divesting all or part of the Istanbul-based firm after failing to reach a deal with Abraaj
The owners of Turkish drugmaker Sanovel Ilac Sanayi ve Ticaret have hired Barclays to look into selling the company after a deal with Dubai’s embattled Abraaj Group collapsed, three people with knowledge of the matter said.
Turkish businessmen Ahmet and Zafer Toksoz are considering divesting all or part of the Istanbul-based firm after failing to reach a deal with Abraaj, the buyout firm that’s being restructured, the people said, asking not to be identified because the matter is private. Sanovel, Barclays and Abraaj declined to comment.
Abraaj had been weighing buying a minority holding in the producer of anti-inflammatory, anti-asthmatic and antibiotic medication, people familiar with the matter said in December.
The buyout firm, once one of the developing world’s most influential investors, is now working with provisional liquidators to restructure, just months after investors commissioned an audit to investigate the alleged mismanagement of cash at its $1 billion health-care fund.
A sale is just one option being considered by Sanovel and it’s not certain that a deal will take place, the people said. A transaction could be based on an enterprise value of at least $800 million, one person close to the company said. Sanovel is among the top-ten producers of generic drugs in Turkey.