The Intelligence from The Economist Private iniquity? The Abraaj case
May 17, 2019
In this discussion, Mathieu Favas, a private equity expert at The Economist, unpacks the spectacular downfall of Abraaj, once a giant in the field. He reveals how financial misconduct and misappropriated funds led to the arrest of top executives and a sharp decline in investments across Africa and the Middle East. The conversation also touches on the upcoming Australian elections, highlighting voter discontent despite economic growth, and the whimsical tradition of the 'democracy sausage' as a uniquely engaging aspect of the voting process.
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Abraaj Accusation
- Hamilton Lane received an email accusing Abraaj Group of inflating investment values.
- Despite the email's unprofessional tone, Hamilton Lane investigated and invested over $100 million.
Abraaj's Prominence
- Abraaj Group, led by Arif Naqvi, was the leading private equity firm in emerging markets.
- Naqvi's charisma and presence at Davos attracted significant investor interest.
Abraaj's Downfall
- Abraaj's downfall began with an investigation into their healthcare impact investment fund.
- News of financial irregularities broke in February 2018, leading to a rapid collapse.