Colony to acquire Abraaj fund units and LP stakes

The investment firm is to take control of four fund businesses and acquire Abraaj's interests in the underlying vehicles.

Colony Capital will acquire a large chunk of Abraaj Group‘s fund management business, bringing the saga of the emerging markets manager one step closer to an end.

The Los Angeles-headquartered investment manager is assuming management of Abraaj’s Latin America, sub-Saharan Africa, North Africa and Turkey funds business and acquiring Abraaj’s limited partnership interests in the underlying vehicles, according to a statement. It will also transfer staff from the eight offices affected by the deal.

Colony has also agreed to oversee some of Abraaj’s remaining funds until a settlement is reached, the statement adds. The deal has received regulatory approval in principle and is expected to receive final approval by 1 July. It emerged from a process of liquidation carried out by professional services firms PwC and Deloitte.

Tom Barrack, executive chairman of Colony Capital, said in the statement: “We are delighted to have crafted this comprehensive global solution for Abraaj and its stakeholders and sincerely hope that this can enable the process of rebuilding on all sides and also bring an end to the speculation that has swirled around Abraaj over the last months.”

Colony, which Barack founded in 1991, invests in healthcare, industrial and hospitality sectors, as well as private equity and private debt investments.

Abraaj on Monday was given breathing space when a Cayman Islands court approved its application for provisional liquidation, allowing the firm to negotiate an orderly restructuring process.