Arab News, Wed, May 29, 2024 | Dhu al-Qadah 21, 1445
TVM Capital Healthcare launches $250m fund for Saudi medical firms
Saudi Arabia:
Saudi medical companies stand to benefit as private equity firm TVM Capital
Healthcare unveils its second pool of funding valued at $250 million for the
Middle East.
Since 2009, the international growth capital
investment fund has operated in the Middle East, expanding to Southeast Asia in
2021.
The launch of the new fund builds on the firm’s
past successes in the region, delivering compelling returns and showcasing its
expertise in sourcing deals and nurturing the growth of sustainable enterprises,
according to a press release.
Bandr Al-Homaly, managing director and CEO of Jada
Fund of Funds, said that the closing of the deal marks an important milestone in
mobilizing private capital into Saudi Arabia’s healthcare sector.
“We are pleased to lead the investment, providing
capital to support the development of the sector in line with Vision 2030,” he
said.
TVM Capital focuses on addressing medical needs
through strategic investments in entrepreneurial ventures.
These efforts bring about lasting positive impacts
in local communities and offer significant returns for investors, it said.
The firm said it has built a reputation as an
international fund manager involved in financing and overseeing major medical
companies within the Kingdom.
The company also invests in healthcare growth
deals in Europe and the US to support these firms’ expansion plans for Saudi
Arabia and the wider Gulf Cooperation Council.
With this two-pronged strategy, TVM Capital aims
to bolster the Saudi economy and enhance the region’s access to cutting-edge
products, technologies, and services.
Chairman and CEO Helmut M. Schuehsler expressed
pride in attracting a notable consortium of institutional and family investment
groups from Saudi Arabia, other GCC countries, and Europe. They are investing in
a specialized capital pool dedicated to domestic companies in the Kingdom and
international firms entering the market.
“We are uniquely positioned for success because
our leadership team comprises executives with long-standing expertise in Europe
and the US, who have built excellent international networks throughout their
careers, alongside local Saudi healthcare experts,” he said.
The chairman noted that their investment journey
in the GCC and Egypt spans over 13 years, with a specific focus on Saudi Arabia
since 2015 through their previous portfolio companies, ProVita International
Medical Center and Cambridge International Medical Center.
“Today, we are truly excited about our ability to
enhance the local and regional healthcare ecosystem at a much larger scale,
helping to improve access to high-quality patient care, medical products, and
treatment regimens across the Kingdom,” Schuehsler said.
Among the initial investments of the fund are
Baraya Extended Care, a chain of long-term, post-acute care and rehabilitation
clinics based in Riyadh; and DEBx Medical, a developer and manufacturer of
innovative products for chronic wound treatment based in Amsterdam, which is set
to enter the Saudi market. Additionally, neurocare group, a provider of
personalized mental health services and products headquartered in Munich, with
clinics in the US, the Netherlands, and Australia, is gearing up to enter Saudi
Arabia and the GCC.
According to the statement, additional deals
encompass longevity and genomics, oncology and pharmaceuticals, as well as
manufacturing and diagnostics.
TVM Capital operates offices in Riyadh, Dubai,
Singapore, and Ho Chi Minh City, with supporting offices in Munich and Boston.
The multinational law firm Morgan Lewis
represented the firm in the fundraiser.