Abraaj fund unit said to get $1 bid

Arif Naqvi, above, established Abraaj Group, which was once the Middle East’s largest buyout firm with almost $14 billion in assets under management. (Reuters)
Updated 07 September 2018
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Abraaj fund unit said to get $1 bid

  • Abraaj owes more than $1 billion to investors following its rapid collapse since February
  • Abraaj’s liquidators are getting offers for regional operations within the fund unit

LONDON: Abraaj Group’s fund unit has received a bid from private equity firm Actis for $1, people familiar with the matter told Bloomberg.
The unit of the troubled Dubai-based private-equity group had managed about $14 billion in emerging market investments at its peak, it was reported.
Chicago-based Vistria Group, Rohatyn Group, Kuwait’s Agility Public Warehousing Co. and Abu Dhabi Financial Group also made offers business, Bloomberg said, quoting anonymous sources.
Abraaj owes more than $1 billion to investors following its rapid collapse since February, when allegations surfaced that some $200 million of funds had been directed to investments for which they were not intended.
Winding up proceedings are underway in Dubai, where some of the Abraaj business operations are regulated, and in the Cayman Islands, where the holding company is domiciled.
Abraaj’s liquidators are also getting offers for regional operations within the fund unit, Bloomberg reported.
Colony Capital Inc. made an offer for its Latin American operations, while Helios Capital Management is bidding for the Africa platform, sources quoted by the news agency said. NBK Capital made an offer for Abraaj’s Middle East and North Africa business, it was reported.
No final decisions have been made and the unit has received offers from other bidders, too, the people said.


Chinese president Xi urges financial risk prevention while seeking stable growth

Updated 23 February 2019
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Chinese president Xi urges financial risk prevention while seeking stable growth

  • China’s economy is growing at its slowest pace in almost 30 years
  • Preventing and resolving financial risks, especially systemic financial risks, is a fundamental task

BEIJING: China should seek stable development of its economy while not forgetting to fend off risks to its financial system, Chinese President Xi Jinping said, state news agency Xinhua reported on Saturday.
China’s economy is growing at its slowest pace in almost 30 years, spurring policymakers to bolster growth by easing credit conditions and cutting taxes.
“It is necessary to focus on preventing risks on the basis of steady growth, while strengthening the countercyclical adjustment of fiscal policy and monetary policy and ensuring that the economy operates in a reasonable range,” Xi said.
Preventing and resolving financial risks, especially systemic financial risks, is a fundamental task, the agency cited Xi as telling a study session for senior Communist Party officials on Friday.
On Wednesday, Premier Li Keqiang reiterated that China would not resort to “flood-like” stimulus such as it unleashed in past downturns.
But after a spate of weak data, investors are asking if Beijing needs to speed or boost support to reduce the risk of a sharper slowdown.
Until now, China has refrained from cutting benchmark interest rates to spur the slowing economy, which would ease financing costs but risk adding to a mountain of debt.
To free up more funds for lending to small and private businesses, the central bank has cut the reserves that banks need to set aside five times in the past year.
Last month, Chinese banks made the most new loans on record, a total of 3.23 trillion yuan ($481 billion). A central bank official said previously that no credit floodgate had been opened, and the lending jump showed recent easing steps were working.
China’s financial sector must serve the real economy, Xi said, but stable growth and risk prevention must be balanced.