Abu Dhabi Financial Group Offers $50m to Buy Abraaj’s Investment

By Atiya Riffat

Abu Dhabi Financial Group’s (ADFG) unit, Abu Dhabi Capital Management (ADCM), has offered to purchase Abraaj Group’s investment management business in a thought of $50 million.

Abu Dhabi Capital Management’s (ADCM) offer is well beneath the $125m offered by New York-based Cerberus Capital Management before Dubai-based Abraaj petitioned for provisional liquidation in the Cayman Islands a week ago, as indicated by Reuters.

ADCM expressed its terms in a letter to Abraaj’s money financial adviser Houlihan Lokey dated June 17, which said it won’t purchase any organizations owned by Abraaj and its partners and won’t expect any liabilities.

Abraaj has been wounded by a line with four of its investors, including the Bill and Melinda Gates Foundation and International Finance Corp (IFC), in a $1 billion healthcare fund.

It has denied it mishandled the assets.

ADFG’s entity plans for turning into the general companion of the limited partnerships that have conferred cash to Abraaj’s private equity funds, a role that is right now played by Abraaj.

“Some Gulf limited accomplices – ranging from financial organizations to pension assets and family businesses – in funds of Abraaj had asked ADFG to investigate a buyout from Abraaj’s investments business as they were worried about their property,” informed sources told.

Abraaj Group, the Middle East’s biggest buyout firm, has been confronting different allegations concerning the misusage of cash, which brought about dividing the group’s investment management business and holding organization.

The UAE-based private equity firm was blamed for misusing a $1 billion healthcare fund.

Reviews found that Abraaj mixed together investor funds with its own cash in the healthcare fund.