Tom Barrack's Colony Capital to buy Abraaj private equity funds

Colon Capital's Tom Barrack at the Republican National Convention in 2016.
Colony Capital CEO Tom Barrack, at the 2016 Republican National Convention. Photo: Robyn Beck/AFP/Getty Images

Colony Capital has agreed to buy several private equity funds from troubled Abraaj Group, despite having previously passed on buying Abraaj's entire investment management business.

Thought bubble: This is a bit unexpected. Not only because Colony didn't want the larger deal, but also because it's mostly a real estate investment firm that doesn't really have any experience in emerging markets private equity. On the other hand, Colony founder Tom Barrack — a close friend of President Trump — has longstanding business ties to the Middle East, including in UAE.