Abraaj to Consider Sale of Stake in Fund Unit to Raise Cash

Abraaj Group, the Middle East buyout firm roiled by allegations of misused funds, is considering the sale of a stake in its fund management business to raise cash amid heightened regulatory scrutiny and the departure of key executives, according to people with knowledge of the matter.

The group has held discussions with advisers about selling part of the newly separated investment business, which oversees funds globally for institutional investors, the people said, asking not to be identified as the matter is private. Meanwhile, the markets regulator for the Dubai financial center where Abraaj is licensed is holding discussions with the firm about some investors’ concern that capital in a health-care fund wasn’t allocated properly, though no formal investigation is underway, they said.