Greater controls may be silver lining in Abraaj collapse - The National

Greater controls may be silver lining in Abraaj collapse - The National:

The collapse of Abraaj Group may disrupt private equity businesses in the Middle East and North Africa, which have registered a decline in number of deals and exits in recent years, but the fallout may also help pave the way for greater controls that will boost investor confidence, analysts said.

“Most investors see Abraaj as a standalone issue,” said Sunaina Sinha, managing partner of UK-based Cebile Capital, which helps private equity firms find investors. “However, the story poses questions for Mena private equity, such as...what action will be taken – both against the company and its directors, and to strengthen the industry going forward?”

Abraaj, once the Middle East’s biggest buyout firm with almost $14 billion of assets under management, has faced a liquidity and reputational crisis since four investors in its $1bn healthcare vehicle alleged mismanagement of funds in February and hired investigators to find out where their money had gone.