Wednesday 26 June 2019

#Abraaj scandal a ‘wake-up call’ for advisory industry  | Financial Times

Abraaj scandal a ‘wake-up call’ for advisory industry  | Financial Times:

When private equity firm Abraaj faced allegations of mismanaging its $1bn healthcare fund last year, executives recognised that a neutral external company with a trusted reputation would be needed to investigate. 

Dubai-based Abraaj, which until recently dominated the emerging markets private equity sector, was accused of using the fund to support the business of its founder, Arif Naqvi. The money mostly came from large institutional investors, including the Bill & Melinda Gates Foundation. Mr Naqvi has always denied wrongdoing.

Yet it appeared the worst had passed when the investigation by Abraaj’s auditor, KPMG, exonerated the firm just a few weeks after the scandal broke.

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