Abu Dhabi – Mubasher: Abu Dhabi Financial Group’s (ADFG) unit, Abu Dhabi Capital Management (ADCM), has offered to buy Abraaj Group’s investment management business in a consideration of $50 million.
ADCM’s bid is so low, compared a $125 million offer presented by the US Cerberus Capital Management before Abraaj’s filing for liquidation, according to Reuters.
ADFG’s entity aims at becoming the general partner of the limited partnerships that have committed money to Abraaj’s private equity funds, a role that is currently played by Abraaj.
“Some Gulf limited partners - ranging from financial institutions to pension funds and family businesses - in funds of Abraaj had asked ADFG to explore a buyout of Abraaj’s investments business as they were concerned about their holdings,” informed sources told Mubasher.
Abraaj Group, the Middle East’s largest buyout firm, has been facing various allegations concerning the misusage of money, which resulted in splitting the group’s investment management business and holding company.
The UAE-based private equity firm was accused of mishandling a $1 billion healthcare fund.
Audits discovered that Abraaj commingled investor funds with its own money in the healthcare fund.
