OpEx Awards 21: EMEA Lower mid-market winner – TVM Capital Healthcare

TVM Capital Healthcare saw a gap in the market when it founded Cambridge Medical and Rehabilitation Center, helping the under-served access quality healthcare.

Over a decade ago, TVM Capital Healthcare identified an unmet need for post-acute, long-term care and rehabilitation services in the UAE healthcare market. According to TVM Capital Healthcare, a significant share of intensive care units were becoming blocked by patients who could not be discharged to post-acute care due to a lack of speciality service providers. A large proportion of local patients and their families were also thought to be seeking out treatment for these situations abroad, in places such as the US and Europe.

To fill this gap, in 2012, the emerging markets-focused private equity firm founded Cambridge Medical and Rehabilitation Center. Its aim was to create a high-quality, post-acute care company that would help unblock high-cost ICU beds in acute-care hospitals, help insurers reduce total costs while providing superior overall patient outcomes, and make quality care services available locally.

Upon establishment of the UAE-based start-up, TVM Capital Healthcare assisted in the development of a regulatory framework for specialised, long-term and rehabilitative care clinics, working closely with regulators, government bodies and insurance providers.

The private equity firm also focused on investing in an experienced management team, who have now worked together at CMRC for over six years. Alongside this, TVM Capital Healthcare implemented an ESG framework and an environmental and social management system, based on International Finance Corporation performance standards, and the firm’s ESG officer worked with CMRC’s management team to monitor and report on ESG issues such as corporate governance, diversity, community engagement and business resilience, among others.

In early 2021, TVM Capital Healthcare sold CMRC to UAE-based Amanat Holdings for $232 million – a more than 4.1x return on capital invested. By the point of exit, CMRC had opened three facilities – Abu Dhabi and Al-Ain in the UAE and Dharan in Saudi Arabia – with a total bed capacity of 256.

256

Bed capacity

4.1x

Return on capital invested

Today, CMRC specialises in inpatient and outpatient services, as well as homecare services, and employs over 600 highly trained staff members. In 2020, the company had approximately 30,000 outpatient visits and during TVM Capital Healthcare’s investment period it served some 1,000 inpatients.

The judges said TVM Capital Healthcare’s backing enabled CMRC to become known for providing “exceptional care”.