PE firm Abraaj Group mulls sale of holdings

Dubai’s Abraaj has been investing in Kenya’s health sector. FILE PHOTO | NMG 

By GEOFFREY IRUNGU

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Summary

• Abraaj Group is facing mounting pressure from investors who are questioning the way it has used the funds invested with it.
• In Kenya, Abraaj has invested in 18 clinics and 10 hospitals that provide over 700 beds.
• Towards the end of last year, Abraaj acquired a 56.2-per cent stake in Kenyan hospital chain Avenue Group following approval by the Competition Authority of Kenya.

Dubai-based Abraaj Group is exploring the sale of its private equity holdings, which runs into billions of shillings in Kenya alone, but which have now come under the spotlight following claims of irregular use of investors’ cash.

According to a report carried in Wall Street Journal this week, the firm is facing mounting pressure from investors who are questioning the way it has used the funds invested with it.

“Abraaj executives are exploring a sale of the firm’s private equity business, people familiar with the matter said,” reported the publication.

In Kenya, Abraaj has invested in 18 clinics and 10 hospitals that provide over 700 beds.

Towards the end of last year, Abraaj acquired a 56.2-per cent stake in Kenyan hospital chain Avenue Group following approval by the Competition Authority of Kenya.

READ: Dubai PE fund Abraaj pumps billions into Kenyan firms

The acquisition was made using a Sh101 billion fund targeting South Asian and African markets. It has also invested in Nairobi Women’s, Metropolitan and Ladnan hospitals, among others.

The company is reported to have injected well over Sh320 billion across Africa.

It was immediately possible get a comment on the report of the sale of the PE assets by the firm as its top management in Nairobi was said to be in meetings abroad.