After several months of dispute with its partners including the Bill & Melinda Gate Foundation and the International Finance Corporation, Abraaj Group has finally sold its private equity business in Africa to Colony Capital.
According to a statement released on June 21, the Dubai-based international investor was accused by its partners of “misusing their money in a $ 1 billion health fund”.
The transaction concerns two funds: in the first place Abraaj Africa Fund III, with 990 million dollars of assets and dedicated to investment in sub-Saharan African companies with strong regional growth potential, mainly in Côte d’Ivoire, Nigeria, Ghana, Kenya and South Africa.
Second, the Abraaj North Africa Fund II, a $ 375 million fund operating since August 2015 in Morocco, Algeria, Tunisia and Egypt. This fund targets well-managed mid-sized companies that have demonstrated strong growth and their ability to become regional leaders, particularly in the materials and logistics, business services, consumer goods and services, health, and education.
Note that the transaction comes as Abraaj faces enormous financial difficulties including a threat of bankruptcy. Under shareholder dispute fund, several Dubai-based group leaders have resigned.
In addition to the divestiture of several branches including its African dependencies, Abraaj has also agreed to temporarily supervise its other regional funds.
