Abraaj liquidators seek more buyers for fund unit

Sources says interested buyers have until August 24 to bid for all of Abraaj's asset-management platform or some of its private equity funds
Abraaj liquidators seek more buyers for fund unit
By Bloomberg
Tue 31 Jul 2018 08:30 PM

The provisional liquidators of Abraaj Group are seeking more bids for the embattled buyout firm’s fund-management unit after investors rejected some earlier offers, according to people with knowledge of the matter.

Interested buyers have until August 24 to bid for all of the asset-management platform or some of its private equity funds, the people said, asking not to be identified as the matter is private. Bids for any limited-partner stakes should be submitted separately, the people said.

Court-appointed liquidators are trying to settle more than $1 billion of debt owed by Abraaj, once one of the most influential emerging-market investor until its dramatic collapse this year. Whoever ends up buying the firm’s asset-management unit will gain access to more than a dozen developing countries worldwide.

Efforts by Abraaj’s provisional liquidators to seek a wider pool of bidders for the assets is a sign of the complexities of the sale. York Capital Management has offered about $400 million, including $350 million to buy Abraaj’s stakes in some of its private equity funds and the rest for the asset-management platform, according to people familiar with the matter.

All offers will be considered based on factors including the value of the bid, assets they’re trying to buy and investor feedback, with preference for proposals targeting the entire business, according to the people. Successful bids will be presented to the limited partners of the relevant funds and a decision on buyers will be made by September 7, the people said.

Cerberus Capital Management, whose offer of about $25 million was the lowest among several, pulled out of the process after its offer was rejected, people familiar with the matter said this month.

A unit of Abu Dhabi Financial Group is also said to have made a $55 million bid to manage Abraaj’s funds and cover the company’s costs, as well as end-of-service payments for employees. An earlier proposal from Tom Barrack’s Colony Capital was also turned down by the liquidators, even though the firm had also made an offer for Abraaj’s limited-partnership stakes.

Deloitte, one of the two liquidators, declined to comment. The second, PricewaterhouseCoopers, didn’t immediately reply to requests for comment.

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