Dubai-based unit of TVM Capital, TVM Capital Healthcare Partners, is planning to launch a new fund in early 2016, said TVM Capital Healthcare Partners founding partner Hoda Abou-Jamra.
Speaking to Private Equity International on the side lines of the PRI/PEI Responsible Investment Forum Abou-Jamra said the new fund would be around $250 million to $300 million and undertake 10 investments.
It is the sponsor’s third fundraising following the $50 million TVM Healthcare MENA I fund launched in 2009, which with co-investments, had the capacity to invest $90 million. That fund is fully invested in five deals across the Middle East, North Africa and India.
TVM Capital Partners is currently raising $40 million to $50 million in a second fund to add to its existing portfolio, a spokesperson said. The fund has had its first closing.
TVM Healthcare MENA I has exited one portfolio company, generating a return of around 13x, Abou-Jamra said. In June, along with other shareholders, TVM Capital Healthcare sold its investment in the UAE’s ProVita International Medical Centre to NMC Health for a total consideration of $160.6 million, according to a press release.
Its first fund invested in the UK’s Bourn Hall Clinic and Cambridge Medical & Rehabilitation Centre, ProVita, Egypt’s Ameco Medical Industries, and the UAE’s Manzil Healthcare Services.
The fund pursues growth investments and buyouts in companies that are or have the potential to become regional leaders in the healthcare market, according to its website. The firm’s model is to bring Western healthcare service providers, operators and products to its target region. Its third fund will follow the same strategy, Abou-Jamra said.
Partners in the first fund include the IFC, Saudi Arabia’s Olayan Group, GE Healthcare and the UAE’s Crescent Enterprises, according to its website.
The IFC’s investment required the firm to report on its environmental, sustainability and governance practices, which it initially viewed as expensive and a burden, Abou-Jamra said. However, the firm found that implementing ESG standards prompted the fund to be more operationally involved. “We see it as an advantage,” she said.
“In emerging markets you need ESG more. In more stable markets you have laws and regulations that force you to [meet these standards]. In emerging markets you can get away with a lot of things,” Abou-Jamra said.