Register now or log in to join your professional community.
Thanks for invitation,
Following our specialized colleagues' answers.
In my opinion the impact would be more of a prolonged one rather than an outburst. The firm being one of the largest private equity mgmt. entities in the region operated at a different scale which was mostly unnoticed by laymen. In short, as any other firm of that stature, Abraaj managed the surplus cash of the Elite who would've ideally expected a noticeable return, diversification of their investment portfolio risk etc. based on the TRUST placed upon the fund manager (i.e. Abraaj).
While needless to mention what being unfolded at the firm, loss of trust by some the Elite investors in the world on one of the established fund managers in the region would most likely highlight the following impacts on the industry overtime;
1. Scrutiny of credential of fund management specialists operating in this part of the world
2. Corporate governance polices / internal controls followed in the normal course of business by these firms (free flow of money to the market doesn't guarantee anything in the long run unless it's prudently managed which require specialist skills as well as internal controls)
3. Possibility of Regional equity funds being classified as relatively high risk (due to business reputation)
4. As a result, the lower than expected investment inflows directed by global fund managers.
