Brookfield Asset Management Inc. has walked away from its bid to acquire certain assets in Turkey managed by Dubai-based private equity firm Abraaj Group Ltd., Private Equity News reported, citing people with knowledge of the matter.
The Toronto-based alternative asset manager was selected to take over the Turkish assets from a pool of 12 bidders. However, one of the sources said Brookfield decided to pull out largely because of Turkey's unstable economy and concerns over previous cases of mismanagement at Abraaj.
As a result of Brookfield's decision, Abraaj might face challenges selling some of its assets to minimize investor losses, the news outlet noted.
A document sent to Abraaj investors showed that private equity firms Actis LLP and Colony Capital Inc. are in line to take over assets in Africa and South America respectively.
The proposed deal would have seen Brookfield take over management of Abraaj's $526 million buyout fund, according to the report.