Abu Dhabi Financial Group (ADFG) has submitted a revised bid to acquire the management rights for the Middle East funds of stricken Dubai-based Abraaj, according to a document seen by Reuters.
The Abu Dhabi-based alternative investment firm is among more than a dozen bidders seeking to buy the bulk of Abraaj's private equity funds.
But in a letter to investors in Abraaj Funds, ADFG said that the bid is unlikely to materialize given the "convolution" of the situation.
To address this, ADFG is seeking a dedicated budget to conduct a full forensic audit and a litigation budget. Its new offer includes up to $6 million for the audit and litigation financing as well as a $10 million credit facility to fund the operations of the Middle East funds.
The $10 million is in addition to $10 million earmarked separately for the fund manager's liabilities.
"Such a dedicated budget is crucial not only to seek damages from previous management but also to ensure recoverability of funds for investors in the Middle East funds," ADFG said in the letter seen by Reuters.
"This means there is a zero capital call requirement from all the 200 unique investors in the Middle East funds which will clear one of the major hurdles going forward for the protection of the assets."
Abraaj has 10 Middle East funds involving some 200 investors from across the globe.
Abraaj filed for provisional liquidation in the Cayman Islands in June after months of turmoil related to a row with investors over the use of their money in a $1 billion healthcare fund.
Last month Reuters reported that Actis had bid to buy the bulk of Abraaj's private equity funds, joining more than a dozen other bidders.