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Fri 17 Aug 2018 12:03 AM

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Consultants hired to separate $1bn healthcare fund from Dubai's Abraaj

Investors in the $1bn Abraaj healthcare fund have announced the appointment of global consulting firm, AlixPartners

Consultants hired to separate $1bn healthcare fund from Dubai's Abraaj

Investors in the $1 billion Abraaj healthcare fund at the centre of the Dubai-based buyout firm's recent troubles have announced the appointment of global consulting firm, AlixPartners, to oversee its separation from Abraaj Group.

AlixPartners has been tasked with ensuring the long term success of the fund in delivering accessible, affordable and quality healthcare in developing countries.

A statement said the fund is now in the process of separating from the Abraaj Group to "ensure continuity and build a stable platform for the future".

It added that the recently announced appointment of provisional liquidators over Abraaj Holdings and Abraaj Investment Management Limited, the investment manager of the fund, does not impact the day to day operations of the fund’s portfolio.

AlixPartners said it is now working alongside the fund’s senior operational team and the provisional liquidators and supporting the search for a permanent replacement investment manager.

Simon Appell from AlixPartners said: “The Abraaj Growth Markets Health Fund is helping to deliver accessible, affordable and quality care for low and middle-income people in 10 of the largest cities in Sub Saharan Africa and South Asia, and we want to see that continue.

"We’re working with the fund’s investors, its senior operational team and the provisional liquidators as part of ongoing discussions with several potential replacement managers for the Fund who will continue to support its investee businesses.

“We are delighted that investors continue to support and finance the fund as it goes through this transition and thank management, portfolio company founders, and advisors for their assistance and support of the Fund’s mission.”

Investors in the fund include the Bill & Melinda Gates Foundation, CDC Group, International Finance Corporation, Medtronic, OPIC, Philips, and Proparco.

Founded in 2002 by Arif Naqvi, Abraaj had nearly $14 billion of assets under management before being granted a court-supervised restructuring in the Cayman Islands, where it is registered, following allegations of the misuse of funds.

At its peak, Abraaj owned stakes in companies in most of the major emerging markets outside of China. The collapse of Abraaj, once one of the developing world’s most influential investors, came months after some of its stakeholders began an investigation into mismanagement of money in its healthcare fund.

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