Gulf Capital ties up with GE Healthcare

The Middle East private equity firm has entered into an alliance with GE Healthcare to develop a regional chain of healthcare centres.

Abu Dhabi-based private equity firm Gulf Capital has signed an agreement with GE Healthcare, the healthcare-focused subsidiary of General Electric, to develop a chain of medical diagnostic and healthcare service centres. Financial details of the deal were not disclosed.

GE Healthcare will offer strategic support to the private equity firm’s portfolio companies in the healthcare space and the two firms will work together to grow these investments into regional healthcare platforms, the two firms said in a statement.

The partnership will acquire existing companies and make investments and launch new projects which will provide services including medical imaging, laboratory services, physiotherapy, dialysis services and oncology. The partnership will initially focus on Egypt and Saudi Arabia before subsequently expanding its operations in other markets in the Middle East and North Africa.

“The collaboration with Gulf Capital will help create a robust model for the delivery of healthcare services in the region,” Aziz Koleilat, general manager of GE Healthcare for the Middle East, said in a statement.

The Middle East has an increasing incidence of lifestyle diseases such as diabetes, heart conditions and obesity-related problems, making advanced diagnostic services of critical importance in the region, the firms said, adding that earlier diagnosis can help to address these problems effectively and help manage rising healthcare bills, which are expected to increase by a multiple of five to $60 billion by 2025.

GE Capital Markets Corporate, an affiliate of GE Healthcare, will provide equipment financing and financial advisory services to the partnership.

Gulf Capital is focused on making investments primarily in the GCC region. The firm is presently investing from GC Equity Partners, a $500 million private equity fund. The fund is focused on making significant minority and control investments in sectors such as oil and gas, power and water, healthcare, education and logistics. The firm's portfolio includes UAE-headquartered water treatment company Metito, Dubai-headquartered interiors contractor Depa, and Dubai-headquartered mobile phone company i2.

Gulf Capital was established in 2005. Its first third party fund was launched in 2007 and raised $162 million.

In October 2009, GE Healthcare, along with GE Global Research and GE Capital, established the $250 million GE Healthymagination Fund. The fund invests between $2 million and $10 million in unlisted companies in broad-based diagnostics, healthcare information technology and life sciences. The company employs more than 46,000 people in more than 100 countries.

Gulf Capital was not immediately available for comment at press time.