FILE PHOTO: A view shows the Dubai Skyline, UAE February 12, 2018. REUTERS/Satish Kumar
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The downfall of Abraaj Group didn't just kill the private equity firm Arif Naqvi built in Dubai.Since Abraaj's swift and spectacular demise was set in motion almost two years ago when investors like Bill Gates got suspicious, virtually no money has been raised by private equity firms based in the Gulf Cooperation Council despite strong performance almost everywhere else, according to Seattle-based data provider PitchBook and London-based Preqin.That may not be enough to win back the trust of investors given the scale of the mismanagement at Abraaj, whose investors had included the Bill & Melinda Gates Foundation, the International Finance Corp. and U.S. and U.K. government agencies.The deceit came to light after foreign investors in one Abraaj fund, including the Bill & Melinda Gates Foundation, grew suspicious about why some of their cash wasn't being deployed to specific investments. In its statement Tuesday, the DFSA said the firm moved money between its investment funds to help pay for its operations, while borrowing from banks in order to deceive investors about its financial health -- similar to conclusions Abraaj's liquidators came to a year ago.
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