ABU DHABI: Abu Dhabi Financial Group (ADFG) has submitted a revised bid to acquire the management rights to Abraaj’s Middle East funds, according to a document seen by Reuters.

The Abu Dhabi-based alternative investment firm is among more than a dozen bidders seeking to buy the bulk of Abraaj’s private equity funds. But the firm does not see the bid materialising given the ‘convolution’ of the situation, it said in a letter addressed to investors in Abraaj Funds.

To address this, ADFG is seeking a dedicated budget to conduct a full forensic audit and a litigation budget. Its new offer includes up to $6 million for the audit and litigation financing as well as a $10m credit facility to fund the operations of the Abraaj’s Middle East funds.

The $10m credit facility to fund the operations is in addition to $10m earmarked for the fund manager’s liabilities. “Such a dedicated budget is crucial not only to seek damages from previous management but also to ensure recoverability of funds for investors in the Middle East funds,” ADFG said in the letter seen by Reuters.

“This means there is a zero capital call requirement from all the 200 unique investors in the Middle East funds which will clear one of the major hurdles going forward for the protection of the assets.”

Abraaj has 10 Middle East funds involving some 200 investors from across the globe. Following months of turmoil related to a row over the use of investors’ money in $1 billion healthcare fund, Abraaj had filed for provisional liquidation in the Cayman Islands in June Last month Reuters reported that Actis had bid to buy the bulk of Abraaj’s private equity funds, joining more than a dozen other bidders.

Published in Dawn, September 18th, 2018