Colony NorthStar Is Said to Walk Away From Abraaj Fund Unit Deal - Bloomberg

Colony NorthStar Is Said to Walk Away From Abraaj Fund Unit Deal - Bloomberg:

"Colony NorthStar Inc. has ended talks to buy a majority stake in the fund-management unit of embattled Abraaj Group, which has been roiled in recent months by allegations of misused funds, according to people with knowledge of the matter.

The U.S. asset manager walked away from a possible deal after its due diligence efforts raised concerns about the Middle East buyout firm, the people said, asking not to be identified because the talks are private. Cerberus Capital Management LP is still in discussions about the stake and is carrying out its own due diligence, the people said.

A spokeswoman for Abraaj said discussions for the sale of the fund-management business “are at an advanced stage,” without disclosing the identity of the potential suitors or commenting specifically about Colony NorthStar. Representatives for Colony NorthStar and Cerberus declined to comment."



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