Mismanagement of investor money in the healthcare fund ultimately led to the collapse of Abraaj last year in the world's biggest private-equity insolvency case
Khawar Mann, the CEO of the $1 billion healthcare fund previously managed by Dubai-based private equity firm Abraaj, has resigned "to pursue new opportunities", according to a memo sent to employees, reported Reuters.
Once the Middle East and North Africa’s largest buyout fund, Abraaj collapsed last year in the world’s biggest private-equity insolvency case in the aftermath of a row with investors, including the Gates Foundation, over the same healthcare fund.
Investors, which also include the Overseas Private Investment Corp, IFC, CDC Group, Proparco, Philips and Medtronic, had alleged mismanagement of money in the fund and commissioned an audit to investigate Abraaj.
Last week, US private equity firm TPG acquired management of the healthcare fund and renamed it Evercare Healthcare Fund. It said the fund will continue its assignment of providing quality yet affordable healthcare across Africa and South Asia.
It said Andrew Currie will temporarily assume leadership of day-to-day activities until a replacement for Mann is found.
“A search is underway for Khawar’s replacement and you will of course be informed as soon as this key role is confirmed,” it said.
Mann could not be reached for comment.
Abraaj founder Arif Naqvi, who was arrested in the UK in April, is currently awaiting potential extradition to the US, where he faces charges of defrauding investors. He has, however, maintained his innocence.
Liquidators for Abraaj, which at some point managed almost $14 billion in assets, are attempting to sell some of the private equity funds managed by the firm.
Colony Capital Inc has agreed to buy Abraaj’s private equity business in Latin America, while Actis is attempting to buy the $1 billion Abraaj Private Equity Fund IV, but is yet to convince fund investors in the fund to opt for the deal.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.