Abraaj Group went from the flagbearer of emerging markets private equity to liquidation in the space of just six months amid allegations of misuse of investors’ capital.
On Thursday, the Securities and Exchange Commission filed a civil complaint against Abraaj Investment Management Limited and founder Arif Naqvi, alleging the misappropriation of over $230 million related to its 2015-vintage Growth Markets Health Fund.
The SEC filed the complaint to the Southern District of New York, as that is where Abraaj’s investor relations office was located, as well as the Health Fund’s largest US limited partner.
Naqvi and former managing partner Mustafa Abdel-Wadood have been arrested in London and New York, respectively, as Reuters reported Thursday.
Deloitte, which was appointed joint provisional liquidator of AIML in June, did not return a request for comment. Abraaj and Naqvi have consistently denied any wrongdoing.
Below is a timeline of the alleged fraud based on the SEC’s complaint.