• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

Abraaj demise shakes East Africa’s private equity

Kenyan Business Feed by Kenyan Business Feed
Share on FacebookShare on Twitter

[ad_1]

JAMES ANYANZWA

By JAMES ANYANZWA
More by this Author

East Africa’s booming private equity industry is in dire need of rejuvenation after the collapse of deep-pocketed Dubai-based private equity fund Abraaj Group, formerly Aureos Capital, which has stunned investors and analysts in the region.

It is estimated that by the time of its demise last year, Abraaj had invested over Ksh320 billion ($3.2 billion) in 80 transactions across Africa, with an estimated $13.6 billion worth of assets under management across Africa, Middle East and South Asia.

Among Abraaj’s success stories in Africa are its cornerstone investments in Liberty Star Consumer Holdings (one of South Africa’s leading FMCG manufacturers), Java House (Nairobi-based East Africa’s leading coffee chain), and Joint Medical Holdings (a hospital group in South Africa).

Abraaj filed for provisional liquidation in 2018 following a dispute with its investors including the Bill & Melinda Gates Foundation and the International Finance Corporation over the alleged misuse of a $1 billion healthcare fund.

Following the filing of its liquidation, Abraaj is liquidating its investments across different markets.

As a result of the turmoil, Abraaj’s investors voted in favour of an international private equity firm, Actis to take charge of its operations in the Middle East and North Africa.

In October last year Actis, the British private equity firm tabled intentions to acquire Abraaj Holdings’ Kenyan assets including Java House operations and a 10 per cent stake in Brookside Dairy Africa.

The takeover bid however excluded Abraaj’s interests in Kenya’s healthcare facilities Avenue, Nairobi Women’s, Metropolitan and Ladnan Hospitals, which were acquired using funds from an independent kitty, Growth Markets Fund Health Fund.

The latter fund, whose investors include the Bill and Melinda Gates Foundation, was used to finance the acquisition of healthcare projects in Kenya, Pakistan and Niger.

According to Reuters, Abraaj’s founder Arif Naqvi was arrested in Britain in April and is awaiting potential extradition to the United States where he faces charges of defrauding investors. He has maintained his innocence.

In January of this year, the Competition Authority of Kenya approved a proposal by Actis to acquire Abraaj’s interest Java House.

And last week US private equity firm TPG said it had signed a definitive agreement to take over the management of Abraaj’s Growth Markets Fund Health Fund, and it will be renamed Evercare Health Fund.

TPG said the healthcare fund will continue with its critical mission of providing affordable and high-quality service across Africa and South Asia.

Besides the Bill & Melinda Gates Foundation, other investors are the Overseas Private Investment Corp, IFC, CDC Group, Proparco, Philips and Medtronic.

The liquidators for Abraaj are trying to reach deals for some of the private equity funds managed by the collapsed firm.

[ad_2]

Source link


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

KRA wins case against Italian firm CMC Di Ravenna : The Standard

May 23, 2019

Cybercriminals up their game, steal Sh30b in one year : The Standard

May 15, 2019

Subscribe.

Trending.

Co-operative Bank of Kenya wins the 2025 Global SME Finance “Product Innovation of the Year (Africa)” award for its full-spectrum MSME financing strategy, including Ksh 77 billion in digital credit via M-Coop Cash, innovative stock financing solutions, and gender-focused credit guarantees that empower over 235,000 small businesses nationwide.

Co-op Bank Wins Africa Product Innovation Award for Innovative Approach to MSME Financing

October 23, 2025
Tourism CS Rebecca Miano joins Samburu leaders at the Maralal Camel Derby, which draws 30,000 visitors and boosts cultural tourism in northern Kenya.

Maralal Camel Derby Draws 30,000 Visitors as Festival Anchors Samburu on Global Tourism Map

September 28, 2025
Safaricom and Huawei launch VybCall, Africa’s first Video Ring Back Tone service, transforming mobile caller experiences.

VybCall Rolls Out Under Safaricom and Huawei Partnership to Personalize Caller Experiences

October 23, 2025
Safaricom honours Raila Odinga’s role in advancing technology, Vision 2030, and democratic reforms as business leaders reflect on his enduring impact.

Safaricom Pays Tribute to Raila Odinga’s Enduring National Legacy

October 23, 2025
Tourism CS Rebecca Miano commissions a new TRA fleet to expand inspections and regulatory oversight in Kenya’s tourism sector.

New TRA Fleet Commissioned to Expand Inspections and Enforce Compliance Nationwide

September 28, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1804 shares
    Share 750 Tweet 439

Recent News

Safaricom’s FY25 total impact across economic, social, and environmental domains reached Ksh 1.1 trillion, contributing Ksh 809 billion to GDP through M-PESA value creation, corporate social investment, and operational expansion, highlighting the company’s measurable societal footprint and sustainability initiatives.

Safaricom Achieves Ksh 1.1 Trillion Total Impact Across Economy, Society, and Environment

October 23, 2025
Over 1,000 women gain access to comprehensive fistula treatment, counselling, and rehabilitation services through the M-PESA Foundation’s integrated medical camp in Migori.

M-PESA Foundation Provides Fistula Surgery and Reintegration Services in Migori

October 23, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF