Thursday 24, May 2018 by Jessica Combes

US private equity firm in talks with Abraaj investors over healthcare fund assets

 

US private equity firm TPG is in talks with investors in Abraaj’s healthcare fund to take over management of the assets of the $1 billion fund

These talks are separate from an ongoing sale process for Abraaj Investment Management Ltd (AIML), which has attracted bidders including Colony Northstar, according to Reuters.

The Wall Street Journal reported talks between TPG and Abraaj investors, reporting that TPG’s The Rise Fund would likely manage these assets, which include hospitals and healthcare units in developing countries.

The talks come after Abraaj indicated it may step down as the manager of the fund after it became embroiled in a scandal over alleged misuse of investor money of some of its investors, including the Bill & Melinda Gates Foundation and International Finance Corp (IFC), a member of World Bank Group.

Abraaj declined to comment on the talks between TPG and investors. But in an email to Reuters it said, it continues to work closely with investors and is committed to ensure that a positive resolution is achieved for all parties.

Founded in 2002 by Arif Naqvi, the company has restructured its management, suspended new investments and slashed 15 per cent of its workforce freed up large investors from millions of dollars in capital commitments and is reviewing its corporate structure.

Naqvi stepped down from the management of Abraaj Group’s fund business, but remains CEO of Abraaj Holdings, which owns the investment management unit.

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