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Thursday, 12 September 2019

Actis takes over two more Abraaj buyout funds in Africa and Southeast Asia

Actis takes over two more Abraaj buyout funds: Actis has reached an agreement to take over the management of two more buyout funds raised by defunct private equity giant Abraaj, according to the Wall Street Journal. A document written by Abraaj’s liquidators shows that the firm was removed from managing Abraaj Africa Fund II and Abraaj South East Asia Fund II in late July and was replaced by Actis. This has seen the Actis acquire a portfolio of companies in Africa and Southeast Asia — including logistics company Ninja Van, which operates in countries including Singapore, Malaysia and Indonesia. Deloitte Touche Tohmatsu — one the fund’s liquidators — have tried to sell parts of its management arm to clear some of its USD 1 bn debt pile. Abraaj managed more than USD 14 bn across more than 40 funds at the peak of its powers, making it the largest EM private equity firm in the world.

Background: Actis acquired USD 2.6 bn of assets in July when it took over Abraaj’s Private Equity Fund IV (APEF IV) and Africa fund III (AAF III), bringing the total value of its asset portfolio to USD 12 bn. Abraaj collapsed last year when investors in its USD 1 bn health-care fund claimed that the firm had mismanaged some of their money. Abraaj founder Arif Naqvi and other senior executives now face criminal charges including racketeering and fraud from US prosecutors. The Dubai Financial Services Authority (DFSA) issued a USD 315 mn fine last month for “serious wrongdoing” and misuse of investor funds.


Corrected on 12 September 2019 

Abraaj Africa Fund II holds no stake in Cleopatra Hospital Group. The Actis-managed Abraaj Private Equity Fund IV (APEF IV) holds an indirect stake in Cleopatra Hospitals through Care Healthcare. The Abraaj North Africa Fund II (ANAF II), currently managed by RMBV, also holds an indirect stake in  Cleopatra Hospital Group through Care Healthcare.

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