AlixPartners appointed to separate Abraaj health fund from group

Investors in Abraaj Group’s healthcare fund have appointed consulting firm AlixPartners to oversee the separation of the fund from the troubled Dubai-based group, they said in a statement.

The Abraaj Growth Markets Health Fund (AGHF) is a $1 billion investment fund with a mandate to provide affordable, high-quality healthcare to low and middle-income patients throughout Sub-Saharan Africa and South Asia. Its performance is measured by both financial returns and development impact metrics.

Investors in the fund include the Bill & Melinda Gates Foundation, CDC Group plc, International Finance Corporation, Medtronic, OPIC, Philips, and Proparco.

“The fund is now in the process of separating from the Abraaj Group to ensure continuity and build a stable platform for the future,” the statement said.

The recently announced appointment of provisional liquidators over Abraaj Holdings and Abraaj Investment Management Limited (AIML), the fund’s investment manager, will not impact the day to day operations of the fund’s portfolio.

“AlixPartners is now working alongside the fund’s senior operational team and the provisional liquidators of AIML and supporting the search for a permanent replacement investment manager to manage the Fund and continue its vital work,” the investors said.

The troubles of Abraaj, one of the biggest names in private equity in the Middle East, began late last year as investors accused the firm of mishandling their money in the healthcare fund.

While Abraaj denied any wrongdoing, the firm soon faced a solvency crisis as the scandal made international headlines. After ceasing fund-raising activities and reshuffling its management, Abraaj in June filed for provisional liquidation in the Cayman Islands.