Abu Dhabi Financial Group (ADFG) has submitted a revised bid to acquire the management rights for the Middle East funds of stricken Dubai-based Abraaj, according to a document seen by Reuters.
The Abu Dhabi-based alternative investment firm is among more than a dozen bidders seeking to buy the bulk of Abraaj’s private equity funds.
But in a letter to investors in Abraaj Funds, ADFG said that the bid is unlikely to materialize given the “convolution” of the situation.
To address this, ADFG is seeking a dedicated budget to conduct a full forensic audit and a litigation budget. Its new offer includes up to $6 million for the audit and litigation financing as well as a $10 million credit facility to fund the operations of the Middle East funds.
The $10 million is in addition to $10 million earmarked separately for the fund manager’s liabilities.
Abraaj has 10 Middle East funds involving some 200 investors from across the globe.
Abraaj filed for provisional liquidation in the Cayman Islands in June after months of turmoil related to a row with investors over the use of their money in a $1 billion healthcare fund.
Last month, Reuters reported that Actis had bid to buy the bulk of Abraaj’s private equity funds, joining more than a dozen other bidders.