Dubai-based private equity investor Abraaj Group has agreed to sell its Latin America, Sub Saharan Africa, North Africa and Turkey funds management business to US-based investment management firm Colony Capital.

The deal includes Abraaj’s investment stakes in the funds and transfer of all employees in Abraaj’s eight offices to Colony Capital.

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Under the agreement, Colony Capital will also manage on an interim basis other group funds that it did not acquire.

The transaction, whose financial terms were not disclosed, already secured in principle regulatory nod. It is expected to close by 1 July 2018, subject to approval from the Grand Court of the Cayman Islands.

Colony Capital executive chairman Tom Barrack said: “We are delighted to have crafted this comprehensive global solution for Abraaj and its stakeholders and sincerely hope that this can enable the process of rebuilding on all sides and also bring an end to the speculation that has swirled around Abraaj over the last months.”

The move comes shortly after the launch of a court-supervised restructuring by Abraaj amid charges of fund misuse.

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The Abraaj Group founder Arif Naqvi said: “The appointment of the joint provisional liquidators and the start of the process of restructuring this business that we operated across diverse markets is a moment of introspection, but also one of satisfaction, knowing that the teams that have been nurtured over the years and the businesses that we were proud to invest in now have a clearly defined future and a good home that will become the custodians of the next phase of this journey.”