Actis Acquires Management Rights To Two Abraaj Funds

Private equity firm Actis has acquired the rights to manage two private equity funds previously managed by Abraaj, the firm announced on Monday. 

In a statement, Actis said it will take over the management rights to Abraaj Private Equity Fund IV and Abraaj Africa fund III. 

The transaction, which includes investments in 14 portfolio companies, is meant to bolster Actis’ position and team in the Middle East and North Africa.

Actis now has $12 billion under management and more than 250 personnel across 16 offices around the world. 

“When a number of investors asked us to step in to be part of a solution in mid-2018, we sought to respond constructively,” said Actis’ chief investment officer, Andrew Newington. 

“A dedicated team from the Actis platform put forward a comprehensive and flexible proposal,” he added. “We are pleased that investors have entrusted us with the stewardship of their portfolio and our focus is now on delivering our plan to drive value on their behalf.” 

Misused

Earlier in July, Actis got the 75 percent of investor support required to take over the $1.6 billion Abraaj Private Equity Fund IV and the $990 million Africa Fund III. The Abraaj Private Equity Fund IV has been identified by US prosecutors as one of several in which money was misused to cover liquidity shortfalls elsewhere in the group.

The announcement follows two other Abraaj deals: the transfer of the firm’s $1 billion healthcare fund to US-based buyout fund TPG and the sale of the Abraaj Latin America fund to Colony Capital. 

Kuwait’s NBK Capital Partners in June withdrew from talks to buy a global credit fund previously managed by Abraaj, Reuters reported at the time. 

American authorities have charged a number of senior Abraaj officials with criminal charges pertaining to what they say was a massive scheme to defraud investors.