The Abraaj Group: A Comprehensive Overview

The Abraaj Group was a leading private equity firm that played a significant role in the Middle East and North Africa's private equity landscape. It was founded in 2002 by Arif Naqvi.

The firm was headquartered in Dubai and had offices in several countries, including Egypt, Turkey, and South Africa.

Abraaj's investment strategy focused on the Middle East, North Africa, and South Asia, with a focus on private equity investments in growth-stage companies.

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The Abraaj Group was founded in 2002 by Pakistani businessman Arif Naqvi with US$3 million in capital.

In its early years, the firm made significant strides in Africa, closing a US$990 million Sub-Saharan Africa fund in April 2015, its third in the region. This was a record sum raised in a single year.

Abraaj's growth continued with the launch of its $1 billion Abraaj Growth Markets Health Fund (AGHF) in 2016. This fund aimed to build affordable and accessible health ecosystems for middle and low-income communities in Sub Saharan Africa and South Asia.

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However, the firm faced turmoil in 2018, with several limited partners, including the Gates Foundation, investigating its misuse of investor funds. This led to the departure of the CFO and the CEO handing over his role at the fund business.

Abraaj's financial struggles were evident, with a $188 million loss recorded for the nine months until the end of March in 2018. Its debts stood at $1.1 billion, including $501.4 million to unsecured creditors and $572.4 million to secured creditors.

In April 2019, a third director, Sivendran "Sev" Vettivetpillai, was arrested. This was a significant blow to the firm, which was eventually forced to sell its various funds to other private equity firms.

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The Abraaj Group was a global investment firm that operated in various business segments, including private equity, private credit, impact investing, and real estate. They had made over 200 investments across different sectors, such as healthcare and clean energy.

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Abraaj's impact investing line of business focused on healthcare and clean energy, with notable investments in Care Hospitals in India and Islamabad Diagnostic Centre in Pakistan. They also partnered with the International Federation of Red Cross and Red Crescent Sociations to provide healthcare services in Kenya.

The firm had invested over $1 billion in energy, including a partnership with ENGIE to develop a wind power platform in India. Abraaj acquired a majority stake in Jhimpir Power to construct a 50 MW wind project in Southeast Pakistan.

Here are some of Abraaj's notable investments:

The Abraaj Group was a significant player in the private equity market, with a diverse portfolio of investments across various sectors. They had made over 200 investments globally, including in emerging markets.

Abraaj's private equity investments included K-Electric, the Karachi Electric Supply Company, and Acurio, a Peruvian restaurant group. They also invested in Hepsiburada, the largest e-commerce player in Turkey, and Java House Group, East Africa's largest casual dining chain.

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Here are some notable investments made by Abraaj:

Abraaj's investments were not limited to private equity, they also had a significant presence in real estate, impact investing, and private credit.

The Dubai Financial Services Authority has been actively involved in investigating the Abraaj Group's collapse.

The regulator has imposed a record fine on the former finance chief of Abraaj, highlighting the severity of the case. This fine is the latest move in the Dubai Financial Services Authority's efforts to hold accountable those responsible for the Abraaj affair.

The investigation is focusing on senior management, including executives who were with the company during its peak and decline. This suggests that the regulator is taking a close look at the leadership's role in the collapse.

Ashish Bhrugu Dave, the former CFO of Abraaj, was fined $1.7m for his involvement in the company's wrongdoing.

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A Dubai court has fined KPMG $231mn over the Abraaj fallout. This verdict was in favor of a group of investors who lost money with Abraaj.

KPMG Lower Gulf has decided to appeal the verdict in the supreme court. This is a significant development in the case.

Both KPMG LLP and Navalkar have withdrawn their decisions for review by the Financial Markets Tribunal (FMT). This move suggests that the parties involved are seeking a more thorough examination of the case.

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The Dubai Financial Services Authority has been cracking down on those responsible for the Abraaj affair, a major financial scandal that shook the region.

The regulator has imposed a record fine on Ashish Bhrugu Dave, the former Chief Financial Officer of Abraaj, for his role in the scandal. He was fined $1.7 million for deception, unauthorized activity, and compliance breaches.

The fine is the latest move by the Dubai Financial Services Authority to hold individuals accountable for their actions. The regulator has been investigating the Abraaj affair for some time now.

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In fact, the investigation is still ongoing, with the regulator focusing on senior management. This suggests that more individuals may face scrutiny and potential fines in the future.

The Abraaj affair has had far-reaching consequences, including a $231 million fine imposed on KPMG Lower Gulf by a Dubai court. The accounting firm is planning to appeal the verdict in the supreme court.

The Dubai Financial Services Authority has made it clear that its investigation into the Abraaj affair will serve as a deterrent for other UAE companies that engage in unlawful activities.

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The Abraaj Group is a global institution founded in 2002 by Arif Naqvi, with a focus on investing in growth markets across Africa, Asia, Latin America, the Middle East, and Turkey.

They've pioneered the private equity industry in many of the markets where they operate, and have developed a purpose-built approach for investing in growth markets.

The Abraaj Group currently manages US$ 13.6 billion in assets, with a focus on investment strategies across private equity, private credit, impact investing, and real estate.

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Their investment process is deeply embedded with environmental, social, and governance (ESG) factors, which are proven value drivers in their partner companies.

Responsible investing that enhances financial returns is at the core of their philosophy, and they aim to leave a positive footprint in their markets.

They are signatories to the UN-backed Principles for Responsible Investment and the United Nations Global Compact.

The Abraaj Group has faced significant regulatory actions in recent years. In July, the Dubai Financial Services Authority fined the company a record $314.6 million for deceiving investors and carrying out unauthorized activities.

Arif Naqvi, the former CEO of Abraaj, was sentenced to three years of imprisonment by a UAE court in August. He was found guilty in the misdemeanour case filed against him by Air Arabia PJSC.

Sivendran (Sev) Vettivetpillai, a British national and former Abraaj employee, was arrested in April 2019 and pled guilty to charges of serious financial crimes.

The Abraaj Group has a strong network of partners and customers, with 10 strategic partnerships announced in recent years.

One of their notable partners is ENGIE, a French electric utility company, with whom they partnered on September 9, 2017, to develop a 1GW wind portfolio in India.

Abraaj Group has also partnered with Netlog, a leading Turkish logistics company, announced on August 3, 2017.

Another significant partnership is with Java House Group, East Africa's leading coffee-led casual dining chain, which Abraaj Group acquired on July 3, 2017.

Their partnerships also include Careem, a company based in the United Arab Emirates, and Islamabad Diagnostics Centre in Pakistan, both announced in 2017.

Here's a list of Abraaj Group's partners and customers: