Mubasher: The UAE company Abraaj will sell some of its key funds to Colony Capital as the Dubai-based private equity firm attempts a court-supervised restructuring amid allegations of misused funds, as reported by Arabian Business.

“The US asset manager reached an initial agreement to acquire Abraaj’s Latin America, sub-Saharan Africa, North Africa and Turkey funds management business, as well as its limited partnership interests in the underlying funds, Abraaj said in an emailed statement without mentioning the value of the deal,” Arabian Business said.

Accordingly, staff in eight offices will be relocated as part of the agreement.

Colony Capital also agreed to oversee other Abraaj funds on an interim basis.

The agreement is expected to be completed by 1 July, having received in principle regulatory approval.

“We are delighted to have crafted this comprehensive global solution for Abraaj and its stakeholders and sincerely hope that this can enable the process of rebuilding on all sides and also bring an end to the speculation that has swirled around Abraaj over the last months,” Colony Capital executive chairman Tom Barrack said in the statement.

This week, Abraaj said a court in Cayman Islands appointed provisional liquidators for its holdings and investment management units.

The funds acquired by Colony Capital include the Abraaj Africa Fund III, which has assets of $990 million, the Abraaj North Africa Fund II with assets of $375 million, the Abraaj Turkey Fund I with $526 million and the Abraaj Latin America Fund II, which has assets of $545 million, according to an Abraaj Group spokeswoman. She declined to comment on the value of the deal.