Abraaj has also not renewed its partnership with Art Dubai, for which it has been the main sponsor since 2007.
The Abu Dhabi Financial Group (ADFG) has submitted a new bid to acquire the management rights for the Middle East funds of embattled private equity firm Abraaj, according to media reports.
ADFG is one of more than a dozen bidders hoping to buy the majority of Abraaj’s private equity firms.
Citing a letter reportedly sent to investors, however, Reuters is reporting that ADFG believes the bid will likely not be successful due to the “convolution” of the situation.
The revised bid, Reuters said, will include up to $6 million for the audit and litigation financing, as well as a $10 million credit facility to fund the operations of the regional funds and a separate $10 million earmarked for 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,” the letter said.
“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 with approximately 200 investors from around the world.
The report concerning ADFG’s revised bid comes just day after it was reported that Abraaj has not renewed its partnership with Art Dubai, for which it has been the main sponsor since 2007.
According to the London and New York-based Art Newspaper, the annual Abraaj Group Art Prize has also been ended. Plans to lend the works of previous winners to the Jameel Arts Centre – which is slated to open on November 11 – have also reportedly been shelved.
“It is our current understanding that conversations around the future of the Abraaj Group Art Prize works are on hold whilst the Abraaj Group’s future is resolved,” the newspaper quoted an Arts Dubai spokeswoman as saying.