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Hedge fund making play for troubled Abraaj

York Capital Management is the latest party to join the race to buy the asset management platform of embattled Dubai private equity firm Abraaj Group, according to people familiar with the matter.

The New York-based firm is offering $45 million for the platform, including about $20 million in severance payments for staff, said the people, who asked not to be identified as the information is private. Abraaj is under a court-supervised liquidation. No final agreements have been reached and the deliberations might not lead to a deal, the people said.

A representative for Abraaj declined to comment. An attempt to reach a representative at York Capital in London wasn't immediately successful, and a message left at the firm's New York offices before local business hours wasn't returned.

A unit of Abu Dhabi Financial Group made a $55 million bid for the asset management platform, people familiar with the matter said Tuesday, challenging a rival offer from Cerberus Capital Management. An earlier proposal from Colony Capital was rejected by the liquidators, despite the firm making an offer for Abraaj's limited partnership stakes as well.

At its peak, Abraaj owned stakes in companies in most of the major emerging markets outside of China. The collapse of Abraaj, once one of the developing world's most influential investors, came months after some of its stakeholders began an investigation into mismanagement of money in its health-care fund. The 16-year-old buyout firm filed for a court-supervised restructuring last month.