Cerberus Capital Management LP has pulled out of the bidding process for Abraaj Group’s asset-management platform after its offer was rejected by investors of the embattled Dubai-based private equity firm, according to people familiar with the matter.
Cerberus, whose offer of about $25mn for the rights to manage the platform was the lowest among several bidders, walked away from the process on Friday, the people said, asking not to be identified as the matter is private.
A representative for the joint provisional liquidators of Abraaj confirmed that Cerberus has withdrawn its offer for the platform after not getting enough investor support, and that it’s continuing to get and evaluate bids for the business.
“We are committed to ensuring the stability of Abraaj Holdings and Abraaj Investment Management Ltd and are making the necessary provisions to ensure that all employees remain motivated and focused on achieving stable returns within the portfolio against a backdrop of support in relation to their salaries and end of service benefits,” the joint provisional liquidators said in the statement.
A representative for Cerberus declined to comment.
Abraaj’s dramatic collapse has led to suitors circling the emerging-market investor’s asset-management unit, which will give the winner access to more than a dozen developing countries worldwide. York Capital Management has offered about $400mn, including $350mn to buy Abraaj’s stakes in some of its private equity funds and the rest for the asset- management platform, people familiar with the matter said on Friday.
Abraaj was the Middle East’s biggest private equity firm until accusations that it mismanaged millions of dollars of clients’ money sent it spiralling towards collapse.
Court-appointed liquidators seeking to settle more than $1bn in debts are weighing offers for Abraaj’s assets.
A unit of Abu Dhabi Financial Group made a $55mn bid for the asset-management platform, challenging Cerberus’s offer, people familiar with the matter said on Tuesday.
An earlier proposal from Tom Barrack’s Colony Capital Inc was rejected by the liquidators, even though the firm had also made an offer for Abraaj’s limited-partnership stakes.

Abraaj’s Naqvi steps down from WEF role

Bloomberg/Zurich

Financier Arif Naqvi, whose Abraaj Group collapsed amid accusations that it mismanaged millions of dollars of clients’ money, has left the board of directors of the World Economic Forum’s (WEF) Global Shapers Community, Swiss newspaper SonntagsZeitung reports.
Naqvi decided to step down last weekend and the WEF ended co-operation with the Abraaj Group in April, the newspaper reported, citing the WEF. The Global Shapers Community board includes Alibaba Group Holding Limited’s Jack Ma, Crown Princess Mette-Marit of Norway and Carlyle Group’s David Rubenstein.




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