Injazat launches $100m healthcare fund

Dubai-based private equity firm Injazat Capital has launched its second fund, Injazat Shefa Healthcare Fund, with a target of $100 million (€85 million).

Injazat Shefa Healthcare Fund [Shefa means ‘wellbeing’ in Arabic] will invest in healthcare providers and ancillary services in the Middle East and North Africa (MENA) region, aiming to create a regional network of affordable healthcare services.

At least three or four of our existing investors have shown an interest in the new fund. Hussein Rifai, CEO, Injazat Capital

Hussein Rifai, CEO of Injazat Capital, told PEO that the firm has already had “positive feedback” from potential investors in the new fund, which will likely be split 70:30 between institutional investors and high net-worth individuals.

Rifai added that it was “highly likely” that existing investors in Injazat’s first fund, Injazat Technology Fund, a $50 million technology fund raised in 2001, will also invest in Injazat Shefa Healthcare Fund. “At least three or four of our existing investors have shown an interest in the new fund,” said Rifai.

Unlike its predecessor, Injazat Shefa Healthcare Fund is also likely to attract commitments from outside of the region, including European investors. Rifai said the firm has already had conversations with German institutional investors, for example.

Rifai: talking to European investors for new fund

The new fund, said Rifai, aims to create “a single brand chain of hospitals and, with technical advisory help in the operations of the hospitals from Victoria Healthcare Association, create local hospitals to serve the local market. The sector is under funded worldwide, but in this region it requires much more structure and then we can look at expansion”.

Injazat Shefa Healthcare Fund is compliant with Shariah law, which means that it has to conform with various Muslim principles, such as not investing in gambling, pornography or arms.

The hospital sector has already proved attractive to private equity firms in Europe this year, with UK mid-market investor Phoenix Equity Partners generating a 6.2x money multiple in its sale of Covenant Healthcare to Electra Partners Europe for £170 million (€250 million; $294 million) in April; in August, Legal and General Ventures, the captive arm of UK insurer Legal & General Group, acquired a portfolio of nine hospitals from private healthcare company BUPA in a deal valued at £85 million (€125 million; $147 million).