Abraaj’s investors prefers Actis’ $1 bid to acquire the ailing PE


Investors of Abraaj Group, the embattled Middle East’s largest private equity firm seems not to be unmoved by financial gains in selling off the company.

According to its official disclosures, Abraaj said it has 10 Middle East funds with approximately 200 investors from around the world.

There are reports that investors of the Middle East largest private Equity firm with close to $14 billion in funds under management prefer the $1 bid from Actis.

Actis is also an emerging market fund manager with core strength in real estate and large diversified companies with the region.

Analyst are of the opinion that investors of Abraaj might settle for the $1 bis from Actis because of its track record and experience across the emerging market. There are more 12 private equity firms bidding to acquire Abraaj.

Abu Dhabi Financial Group (ADFG), a PE firm owned by the Emirati government has submitted a bid of $27 million for Abraaj, a bid that has garnered local supports because of its proximity to the company.

In a statement to Arabian Business, however, ADFG said it considers the bidding process “a very open competition.”

According to a statement ADFG quoted by Arabian Business, the revised proposal is “well placed” to secure approval from the investors, and sets aside specific amounts from ADFG to cover forensic auditing, litigation finance, a credit facility in case of cash shortfalls, and a facility to cover any fund manager liabilities – meaning that there would be a zero capital requirement from the 200 unique investors in Abraaj’s Middle East funds.

Trouble started for Abraaj when it could not pay its investors and filed for a technical restructuring that has led to key asset sales.