• Omar Lodhi and Selcuk Yorgancioglu appointed as Co-Chief Executive Officers of the Fund Management Business, Abraaj Investment Management Limited (AIML)
• AIML will have an independent board of directors and management team
• Arif Naqvi will remain Chief Executive of Abraaj Holdings which he founded in 2002

In a press release, Abraaj Group today announced broad changes to the firm’s governance and operating model and the appointment of a new leadership team following a dispute with investors.

The firm has hired Houlihan Lokey to help solve the dispute with investors after disagreements surfaced over Abraaj’s use of funds from some of its investors, including Bill & Melinda Gates Foundation and International Finance Corporation – World Bank Group.

According to a local daily, the announcement comes days after the Wall Street Journal reported that the World Bank is widening its inquiry to other funds at Abraaj in which it is an investor. According to the Journal report, the World Bank was preparing to send its own people to the offices of Abraaj in Dubai to carry out an audit

The re-organization will see separation of Abraaj Investment Management Limited (AIML) and Abraaj Holdings (AHI), which will be independently managed. The fund management business will continue to oversee the operations of all of Abraaj’s funds globally on behalf of leading institutional investors and manage a portfolio of investee businesses across Asia, Africa, Middle East, Turkey and Latin America.

The executive leadership team at AIML will be led by Omar Lodhi and Selcuk Yorgancioglu as Co-Chief Executive Officers. Mr. Naqvi will focus on managing Abraaj Holdings and will retain a non-executive role as a member of the Global Investment Committee of AIML.

Omar Lodhi and Selcuk Yorgancioglu will assume their roles with immediate effect.

Mr. Lodhi and Mr. Yorgancioglu have each been working with the Group for over 10 years Partners for the Group’s Asia and Turkey businesses.

AIML has commissioned a comprehensive review of its corporate structure with areas of focus to include governance and control functions following a dispute with investors.

Outgoing Chief Executive and founder of Abraaj Group, Mr. Naqvi said that, “It has been a privilege to have led Abraaj over this time and to have created a new model of private equity for our markets. I am delighted that Omar and Selcuk, who have been dedicated professionals at our firm, will take on the mantle at AIML. I have every faith that under their leadership, this dynamic firm will achieve even greater heights. The team has my full support and I look forward to contributing to the success of Abraaj going forward”.

Omar Lodhi and Selcuk Yorgancioglu, Co-Chief Executive Officers, AIML added, “We are privileged to have the opportunity to lead a premier private equity firm in growth markets. Over the years, this firm has built an outstanding platform and invested in leading brands in over 30 countries. With a deep bench of committed talent at all levels of the firm, we are well poised to capitalize on the growth that lies ahead in our markets. We thank Arif and the board for their support and look forward to leading the firm in its next growth stage”.