Actis takes over Abraaj funds

Abraaj Private Equity Fund IV held a final close on $1.6bn in 2011 with a mandate to invest in growth markets globally and Abraaj Africa Fund III raised $990m in 2013 to invest in mid-market sub-Saharan African countries.

Actis was invited to step in and provide a solution by the LPs of the two funds and the liquidators of the Abraaj estate. Actis described the process as "extremely complex" in a statement, but added that the solution received strong support and was officially approved by LPs in July.

It is understood that Actis will employ around 20 former Abraaj employees to assist with managing the funds, but no one at a senior level. The investor will take over the management of 14 portfolio companies and said the transaction strengthens its market position and team in Africa and the Middle East.

Abraaj is facing allegations of artificially inflating the valuations of its funds at the behest of former CEO Arif Naqvi, who is also accused of misappropriating funds from the global healthcare fund. The $1bn Global Markets Health Fund was taken over by TPG in May and renamed the Evercare Health Fund.

Actis has raised $15bn to invest in growth markets globally and employs 120 investment professionals at 16 offices. It has 300 LPs across four asset classes.

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• Topics
• GPs
• LPs
• Abraaj Capital
• Actis