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Colony NorthStar Is Said to Walk Away From Abraaj Fund Unit Deal

  • Cerberus is still in talks for asset management business
  • Abraaj is also facing concerns over impending loan repayments
Updated on

Colony NorthStar Inc. has ended talks to buy a majority stake in the fund-management unit of embattled Abraaj Group, which has been roiled in recent months by allegations of misused funds, according to people with knowledge of the matter.

The U.S. asset manager walked away from a possible deal after its due diligence efforts raised concerns about the Middle East buyout firm, the people said, asking not to be identified because the talks are private. Cerberus Capital Management LP is still in discussions about the stake and is carrying out its own due diligence, the people said.