NBK Capital Partners abandons talks to buy Abraaj's credit fund.

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NBK Capital Partners, owned by Kuwait's biggest lender, has walked away from advanced talks to buy a global credit fund previously managed by collapsed buyout firm Abraaj Capital Ltd, two sources familiar with the matter said.

The move came as US prosecutors last week charged several senior executives of Abraaj with criminal charges, accusing them of taking part in a massive international scheme to defraud investors.

NBK Capital Partners "is not engaging with them," a source with direct knowledge of the matter told referring to the liquidators for Abraaj, who are seeking a new manager for the fund.

NBK Capital Partners had been seen as the frontrunner to manage the fund and had been close to a deal, sources have previously said.

Abraaj, which managed $13.6 billion at its peak, had been the largest buyout fund in the Middle East and North Africa until it collapsed last year in the aftermath of a row with investors, including the Gates Foundation, over a $1 billion healthcare fund. Abraaj filed for provisional...