Abraaj Fund Investors Claim They Are Owed at Least $300 Million - Bloomberg

Abraaj Fund Investors Claim They Are Owed at Least $300 Million - Bloomberg:

Investors in a $1.6 billion-Abraaj Group fund said they are owed at least $300 million by the floundering Middle Eastern private equity firm, according to a letter seen by Bloomberg News. They also ask to remove the company as manager.

The estimate of what is owed to Private Equity Fund IV by Abraaj is nearly triple the $94.6 million found after a review by Abraaj’s accounting firm Deloitte LLP in June. The investors are also seeking to stop paying management fees to Abraaj, citing breach of duties to the fund, according to the letter dated Aug. 13.

The investors’ council has said it would take legal action if it is unable to reach an acceptable agreement with court-appointed liquidators Deloitte and PricewaterhouseCoopers LLP. It said since Deloitte and PwC were appointed on June 18, they have made "insufficient progress” to stem losses tied to “mismanagement and apparent fraudulent activity” by Abraaj and the general partner.