Abraaj Capital, LPs at odds over fund misuse, investments
Dubai-based private equity firm Abraaj Capital is being investigated by some of its Limited Partners, or investors, over allegations of fund misuse and is said to have told them that its investment in Hyderabad-based Care Hospitals has not met its expectations.
According to a report in The New York Times, the PE firm has informed the LPs of its healthcare fund that the hospital operator’s pre-tax earnings have declined from $14 million to $8 million. Abraaj hasn’t marked down the value of its investment to reflect lower earnings, the report said.
However, a spokeswoman for Abraaj denied the reports that the PE firm was unhappy with its investment in Care Hospitals but said it wouldn’t comment on the company’s financials for confidentiality reasons.
Photo courtesy of Steven Depolo.