United Arab Emirates (UAE)-based Abraaj Group, one of the biggest private equity firms in the Middle East, said here Sunday that "unused capital" for its Abraaj Growth Markets Health Fund (AGHF) was returned to all investors, denying a New York Times report which stated that some investors allegedly accused the group of having "misused funds."
Abraaj (Arabic for 'towers') said following discussions with investors that it "returned the unused capital to all investors in the fund at the end of December 2017."
On February 2, 2018, U.S. daily New York Times (NYT) reported that some of its 24 investors have "complained" about an alleged stir among some investors in relation to "more than 200 million U.S. dollars that they and others had provided was not spent."
The article titled "Leading Private Equity Firm Accused of Misusing Funds" by NYT, which is also available online, said since late 2016, the Abraaj goup "drew down 545 million U.S. dollars from investors to buy hospitals in Nigeria, Pakistan and India."
It added that at a meeting in London in September, "the investors were demanding proof of 200 million dollars in cash related to the AGHF which were not invested."
Abraaj, led by Dubai-based Pakistani businessman Arif Naqvi, denied any embezzlement, stating that "All capital that was drawn from AGHF investors was for approved fund investments."
However, the firm said that "Some capital was not used as quickly as anticipated due to unforeseen political and regulatory developments in several of the fund's operating markets. These delays were regularly communicated to investors through quarterly General Partner Reports and other investor communications."
In order to proof that it was not involved in any wrong-doing, Abraaj confirmed in its statement to the media that it has engaged global auditing firm KPMG "to verify all receipts and payments made by the fund in accordance with the International Standard on Related Services applicable to agreed-upon procedures engagements."
Since its foundation in 2002, Abraaj has executed over 200 investments with a special focus on the emerging markets. According to its website, the company runs 20 offices across the globe.
Abraaj (Arabic for 'towers') said following discussions with investors that it "returned the unused capital to all investors in the fund at the end of December 2017."
On February 2, 2018, U.S. daily New York Times (NYT) reported that some of its 24 investors have "complained" about an alleged stir among some investors in relation to "more than 200 million U.S. dollars that they and others had provided was not spent."
The article titled "Leading Private Equity Firm Accused of Misusing Funds" by NYT, which is also available online, said since late 2016, the Abraaj goup "drew down 545 million U.S. dollars from investors to buy hospitals in Nigeria, Pakistan and India."
It added that at a meeting in London in September, "the investors were demanding proof of 200 million dollars in cash related to the AGHF which were not invested."
Abraaj, led by Dubai-based Pakistani businessman Arif Naqvi, denied any embezzlement, stating that "All capital that was drawn from AGHF investors was for approved fund investments."
However, the firm said that "Some capital was not used as quickly as anticipated due to unforeseen political and regulatory developments in several of the fund's operating markets. These delays were regularly communicated to investors through quarterly General Partner Reports and other investor communications."
In order to proof that it was not involved in any wrong-doing, Abraaj confirmed in its statement to the media that it has engaged global auditing firm KPMG "to verify all receipts and payments made by the fund in accordance with the International Standard on Related Services applicable to agreed-upon procedures engagements."
Since its foundation in 2002, Abraaj has executed over 200 investments with a special focus on the emerging markets. According to its website, the company runs 20 offices across the globe.
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