Complex Made Simple

Seven things you NEED TO KNOW about Abraaj Group

After days of speculations and negotiations, Dubai-based Abraaj Group has reached an agreement that is being deemed as a ‘comprehensive global solution’ that could script a trouble-free future for Abraaj and its stakeholders.

Abraaj Group has inked a pact with New York-listed Colony Capital, Inc., reaching an agreement for the sale and purchase of the Group’s Latin America, Sub Saharan Africa, North Africa and Turkey Funds management business and the Group’s Limited Partnership interests in the underlying Funds. This was announced on Thursday (June 21).

Earlier on June 19, Abraaj Group had announced that a Cayman Islands court approved a request by the buyout firm for a provisional liquidation of the business. Arif Naqvi, founder of the Abraaj Group, has termed the recent developments as satisfactory.

READ: Has your UAE bank added the new fee cap to its website?

“The appointment of the joint provisional liquidators and the start of the process of restructuring this business that we operated across diverse markets is a moment of introspection, but also one of satisfaction, knowing that the teams that have been nurtured over the years and the businesses that we were proud to invest in now have a clearly defined future” Naqvi says.

Here are 7 things you NEED TO KNOW about Abraaj Group:

  1. Phenomenal start

Founded in 2002 by Pakistani financier Arif Naqvi, Abraaj Group emerged to become a leading private equity investor in growth markets with a regional footprint spanning Latin America to South East Asia.

  1. Investments

The group has investments, which include a portfolio of mature businesses covering diverse sectors including financial services, FMCG, industrials, healthcare, education, manufacturing and logistics.

READ: World Wi-Fi Day: Why better connection is key to economic growth

  1. Huge portfolio

Abraaj Group currently manages $13.6 billion in assets and is focused on investment strategies across private equity, private credit, impact investing and real estate. (as per Abraaj Group’s website).

  1. Partner companies in MENA

Abraaj Group has invested in emerging consumers and fast-growing cities, targeting a diverse group of consumer-facing businesses in high growth sectors. Some of the partner companies in the Middle East and North Africa (MENA) region include Air Arabia, Kuwait Energy, Middlesex University Dubai, Saudi Tadawi Healthcare Company, Art Marine, Stanford Marine Group and Spinneys.

  1. Key industries:

Abraaj Group has its interests in various sectors, such as consumer goods and services, financial services, healthcare and education, industrials, materials and logistics.

READ: Could the next recession come from Cryptocurrencies?

  1. Global presence

As of June 30, 2017, with more than 200 investments, Abraaj Group has 200 offices spread across five global hubs including Mexico City, Dubai, Nairobi, Istanbul and Singapore.

  1. Start of irregularities

In February this year, four investors, including the Bill & Melinda Gates Foundation, appointed independent investigators to find out what went wrong with the money in Abraaj’s healthcare fund. The $1bn Abraaj Growth Markets Health Fund deployed capital from investors including the Bill & Melinda Gates Foundation, the World Bank’s International Finance Corporation, Proparco Group of France and the UK’s CDC Group.