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Abraaj's `Unusual' Ways Revealed as PwC Seeks Missing Documents

  • Firm borrowed to meet gap between fees and expenses, PwC says
  • ‘Highly unstable business model’ for private equity fund: PwC
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Photographer: Christopher Pike/Bloomberg
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Abraaj Holdings had an “unusual” business model reliant on short-term borrowing, and key financial statements are missing or nonexistent, according to one of the firms tasked with salvaging the Dubai-based private-equity firm’s assets.

In a report seen by Bloomberg News, PricewaterhouseCoopers said it has “been unable to obtain standalone annual financial statements or management accounts for the company.” It noted “multiple layers of leverage” as the company borrowed to offset a "long-running liquidity shortfall between the investment management fees and operating expenses.”