TVM Capital Healthcare targets $300m for Fund III

The emerging markets-focused fund intends to invest in up to 12 healthcare companies across MENA, India and Southeast Asia.

TVM Capital Healthcare Partners, the Dubai-based unit of TVM Capital, has launched its third emerging markets-focused healthcare fund with a target of $300 million, according to a statement from the firm.

TVM Healthcare III will look to invest in up to 12 healthcare companies in the Middle East and North Africa, India, and south-east Asia, focusing on growth capital investments. The firm has identified “a number of highly attractive investment opportunities in all three regions”.

“Urbanisation and socio-economic development in emerging markets are resulting in rapidly increasing demand for high-quality healthcare. There is a real opportunity for private companies to complement the public sector, by stepping up to supply specialist services,” Helmut Schuehsler, chief executive officer of TVM Capital Healthcare, said in the statement.

“Although recent emerging market volatility may make fundraising challenging, it also creates attractive investment opportunities, especially in defensive sectors such as healthcare that benefits from solid long-term fundamentals.”

The vehicle follows 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.

Those investments include United Arab Emirates (UAE) acute ventilated care provider ProVita International Medical Center, which the firm sold to London-listed NMC Health last year in a $160.6 million transaction, generating a return of around 13x, TVM Capital Healthcare founding partner Hoda Abou-Jamra told Private Equity International in June.

“Our investment in ProVita and successful exit really showed how a specialist private equity investor can create value in emerging market healthcare,” Schuehsler said in the statement.

“Having identified an unmet need for specialist long-term care, we co-operated with government agencies to develop a licensing regime for private providers, and built a thriving business over five years which made major contributions to the quality of life of patients on long-term ventilation.”

TVM Healthcare MENA I also invested in the UK’s Bourn Hall Clinic and Cambridge Medical & Rehabilitation Centre, Egypt’s Ameco Medical Industries, and the UAE’s Manzil Healthcare Services.

Partners in the first fund include the IFC, Saudi Arabia’s Olayan Group, GE Healthcare and the UAE’s Crescent Enterprises, according to the firm’s website.

Fund III will follows the same strategy as its predecessor, pursuing 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, according to its website.

TVM Capital Healthcare has registered Fund III under the Qualified Investor Fund (QIF) regime established by the Dubai International Financial Centre (DIFC).

The QIF fund regime, which is operated by DIFC’s regulator, the Dubai Financial Services Authority, is designed to promote Dubai as an asset management centre by “facilitating fund registration while maintaining global best practice in regulation”, according to the statement.