Tom Barrack, CEO of Colony Capital - his firm is said to be among six companies in contention to manage Abraaj $1bn healthcare fund. AFP
Tom Barrack, CEO of Colony Capital - his firm is said to be among six companies in contention to manage Abraaj $1bn healthcare fund. AFP
Tom Barrack, CEO of Colony Capital - his firm is said to be among six companies in contention to manage Abraaj $1bn healthcare fund. AFP
Tom Barrack, CEO of Colony Capital - his firm is said to be among six companies in contention to manage Abraaj $1bn healthcare fund. AFP

What exactly is going on at Dubai private equity firm Abraaj


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In February, reports emerged that some of the 24 high-profile investors in a $1 billion healthcare fund owned by Abraaj Holdings had initiated an investigation, suspecting misuse of hundreds of millions of dollars of their money.

The Abraaj Growth Markets Health Fund deployed capital from investors including the Bill & Melinda Gates Foundation, the World Bank’s International Finance Corporation, the UK’s CDC Group and Proparco Group of France.

These four requested an audit of the health fund and engaged Ankura Consulting to find out what had happened to some of the money invested in the vehicle.

All along, Abraaj, and its Pakistan-born founder Arif Naqvi, have denied any wrongdoing. The saga has, however, roiled the region's private equity markets due to the vast pool of stakeholders with exposure to Abraaj, ranging from low-cost carrier Air Arabia to Kuwait's Public Institution for Social Security. Creditors have sought liquidation of the firm and its assets in efforts to recover their funds in the wake of the allegations.

Timeline of the main events

Feb 2: The New York Times and The Wall Street Journal run articles revealing the investigation into the alleged misappropriation of funds in the $1bn healthcare fund.

Feb 4: Abraaj issues a statement denying any misappropriation of funds, and dismissing the media report as "inaccurate and misleading." It also says it has hired auditing firm KPMG to investigate the matter.

Feb 8: Abraaj says the KPMG review found no evidence of misuse of funds

Feb 23: Abraaj says Mr Naqvi has relinquished control of the firm's fund management business but will remain CEO of the holding company. Omar Lodhi and Selcuk Yorgancioglu, the two partners with the firm, have been promoted as co-chief executives of the fund management business, Abraaj Investment Management Limited, which will have an independent board of directors.

March 30: Reports that Abraaj is cutting nearly 15 per cent of its total workforce of about 350 people.

April 15: Abraaj said to have hired auditing firm Deloitte to examine its business, including the healthcare fund after investors questioned the earlier review by KPMG.

May 7: Abraaj reportedly in talks to sell a majority stake in its fund management unit to US asset manager Colony NorthStar to help stabilise the business.

May 19: Bloomberg reports that the alleged misuse of funds went beyond the $1 billion healthcare fund.

June 5: Abraaj says it expects to reach a deal with its secured creditors to freeze its debt.

June 7: Kuwait's Public Institution for Social Security, an unsecured creditor, says it has filed a petition in a Cayman Islands court seeking liquidation of Abraaj Holdings.

June 11: According to findings of a review by Deloitte show that Abraaj commingled about $95m after it faced cash shortages. There was no evidence found of any embezzlement or misappropriation.

June 15: Abraaj Holdings seeks a Cayman Islands court-supervised restructuring as the firm tries to re-order its liabilities and pursue the sale of its funds management business.

June 14: Egypt's Orascom Construction says Abraaj has offloaded its entire stake in the company for $52m.

June 19: Abraaj Group says a Cayman Islands court approved its request for a provisional liquidation of the business, enabling a court-supervised restructuring and protection of stakeholders' rights.

June 21: Abraaj says it has agreed to sell some of its key funds to Colony Capital of the US.

What does that deal mean for Abraaj, its staff, investments and investors?

Joint-liquidators Deloitte said the sale of the units and assets will mean continuity of trade, servicing of clients and employment of staff in the Latin America, Sub-Saharan Africa, North Africa and Turkey regions. Mr Naqvi said that this sale means that "the teams that have been nurtured over the years and the businesses that we were proud to invest in now have a clearly defined future and a good home". It also means that the court-ordered liquidation and restructuring of the group will proceed.

Who are Colony Capital?

Colony Capital is a US real estate and investment management firm which has $43bn of assets under management. Its founder and executive chairman is the Lebanese-American billionaire Tom Barrack, who is a close confidante of US president Donald Trump.

What next?

Abraaj will hope that the deal with Colony will end the saga as it moves ahead with liquidation. However, it is likely that the focus will now shift to how companies like Air Arabia were left exposed in such a way in the first place through investments with Abraaj.

Autumn international scores

Saturday, November 24

Italy 3-66 New Zealand
Scotland 14-9 Argentina
England 37-18 Australia

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Brief scores:

Toss: Australia, chose to bat

Australia: 272-9 (50 ov)

Khawaja 100, Handscomb 52; Bhuvneshwar 3-48

India: 237 (50 ov)

Rohit 56, Bhuvneshwar 46; Zampa 3-46

Player of the Match: Usman Khawaja (Australia)

Player of the Series: Usman Khawaja (Australia)

Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EMaly%20Tech%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Mo%20Ibrahim%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%20International%20Financial%20Centre%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%3C%2Fstrong%3E%20%241.6%20million%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2015%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%2C%20planning%20first%20seed%20round%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20GCC-based%20angel%20investors%3C%2Fp%3E%0A
COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
What is a calorie?

A food calorie, or kilocalorie, is a measure of nutritional energy generated from what is consumed.

One calorie, is the amount of heat needed to raise the temperature of 1 kilogram of water by 1°C.

A kilocalorie represents a 1,000 true calories of energy.

Energy density figures are often quoted as calories per serving, with one gram of fat in food containing nine calories, and a gram of protein or carbohydrate providing about four.

Alcohol contains about seven calories a gram. 

WWE Super ShowDown results

Seth Rollins beat Baron Corbin to retain his WWE Universal title

Finn Balor defeated Andrade to stay WWE Intercontinental Championship

Shane McMahon defeated Roman Reigns

Lars Sullivan won by disqualification against Lucha House Party

Randy Orton beats Triple H

Braun Strowman beats Bobby Lashley

Kofi Kingston wins against Dolph Zigggler to retain the WWE World Heavyweight Championship

Mansoor Al Shehail won the 50-man Battle Royal

The Undertaker beat Goldberg

 

Our legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

If you go

The flights
Emirates and Etihad fly direct to Nairobi, with fares starting from Dh1,695. The resort can be reached from Nairobi via a 35-minute flight from Wilson Airport or Jomo Kenyatta International Airport, or by road, which takes at least three hours.

The rooms
Rooms at Fairmont Mount Kenya range from Dh1,870 per night for a deluxe room to Dh11,000 per night for the William Holden Cottage.

F1 The Movie

Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

UAE currency: the story behind the money in your pockets
FORSPOKEN
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Star%20Wars%20Jedi%3A%20Survivor
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Diablo%20IV
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Baldur's%20Gate%203
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The%20Legend%20of%20Zelda%3A%20Tears%20of%20The%20Kingdom
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Marvel's%20Spider-Man%202
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Assassin's%20Creed%20Mirage
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Starfield
%3Cp%3EDeveloper%3A%20Bethesda%20Game%20Studios%0D%3Cbr%3EPublisher%3A%20Bethesda%20Softworks%0D%3Cbr%3EConsole%3A%20PC%2C%20Xbox%0D%3Cbr%3ERelease%20date%3A%202023%3C%2Fp%3E%0A
Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases -  but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.

The Comeback: Elvis And The Story Of The 68 Special
Simon Goddard
Omnibus  Press

RESULTS

6.30pm Handicap (TB) $68,000 (Dirt) 1,200m

Winner Canvassed, Par Dobbs (jockey), Doug Watson (trainer)

7.05pm Meydan Cup – Listed Handicap (TB) $88,000 (Turf) 2,810m

Winner Dubai Future, Frankie Dettori, Saeed bin Suroor

7.40pm UAE 2000 Guineas – Group 3 (TB) $125,000 (D) 1,600m

Winner Mouheeb, Ryan Curatolo, Nicholas Bachalard

8.15pm Firebreak Stakes – Group 3 (TB) $130,000 (D) 1,600m

Winner Secret Ambition, Tadhg O’Shea, Satish Seemar

9.50pm Meydan Classic – Conditions (TB) $$50,000 (T) 1,400m

Winner Topper Bill, Richard Mullen, Satish Seemar

9.25pm Dubai Sprint – Listed Handicap (TB) $88,000 (T) 1,200m

Winner Man Of Promise, William Buick, Charlie Appleby

Pieces of Her

Stars: Toni Collette, Bella Heathcote, David Wenham, Omari Hardwick   

Director: Minkie Spiro

Rating:2/5

THE BIO:

Sabri Razouk, 74

Athlete and fitness trainer 

Married, father of six

Favourite exercise: Bench press

Must-eat weekly meal: Steak with beans, carrots, broccoli, crust and corn

Power drink: A glass of yoghurt

Role model: Any good man

Mission%3A%20Impossible%20-%20Dead%20Reckoning%20Part%20One
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The%20specs
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ESSENTIALS

The flights

Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.

The hotels

Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.

The tours

A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages. 

Like a Fading Shadow

Antonio Muñoz Molina

Translated from the Spanish by Camilo A. Ramirez

Tuskar Rock Press (pp. 310)

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
While you're here