Feb 15 2010
TVM Capital MENA today announced that it has received the approval of
the Dubai Financial Services Authority (DFSA) to start operation of its
first regional healthcare growth capital fund with US$40 million of
subscriptions from founding investors, Saudi Health Investment Company
(SHIC), the International Finance Corporation (IFC), and GE Healthcare.
TVM Capital MENA Ltd., the fund’s operator, is based in the Dubai
International Financial Centre (DIFC) and is licensed and regulated by
the DFSA.
“German Private Equity
Firm of the Year 2008”
The fund established by TVM Capital MENA is the first
healthcare-dedicated fund in the MENA region to be operated by a leading
global healthcare and life science manager with a significant track
record in the sector. The Fund will seek to capitalise on the
substantial growth opportunities in the healthcare service and
pharmaceutical/life science sectors in the Middle East and North Africa
(MENA) region. On the services side, the focus will be on investments in
specialised clinics, medical laboratories, small hospitals, diagnostic
imaging centres, providers of outsourced services to healthcare delivery
facilities, clinical trial management services, and healthcare IT and
insurance. On the life science product side, investments will focus on
pharmaceutical and other life science product companies that are
involved in the licensing, import, manufacture and distribution of
medicines, medical devices and diagnostics.
Abdulla Mohammed Al Awar, CEO of the DIFC Authority said: “While the
current economic environment has posed many challenges, it has also
presented several new opportunities for private equity funds. The global
financial crisis has shown the need for private equity firms to focus on
the fundamental profitability and growth of the companies they invest
in. In this light, some of the most exciting opportunities for private
equity in the MENA region lie in the healthcare sector. By providing a
world-class legal and regulatory framework, DIFC offers a secure and
productive platform for private equity firms like TVM Capital MENA to
operate their funds and develop their business.”
Kevin Birkett, Executive Director - Asset Management, DIFC Authority
said: “DIFC’s commitment to maintain the highest global standards of
transparency and integrity has made it a natural base for financial
services firms. Funds management is one of the strategic sectors that
DIFC is focusing its development efforts on. Over the last few years,
DIFC has introduced supportive legislation specifically aimed at tapping
the growth potential of this sector in the MENA region. Healthcare
represents one of the most promising growth areas for private equity
funds in the region and we are keen to provide all the support we can to
facilitate the growth of such funds TVM Capital MENA’s healthcare fund.”
Dr. Helmut Schühsler, Chairman of the Board of TVM Capital MENA Ltd. and
a Managing Partner of TVM Capital GmbH, Munich said: “The Fund will draw
from TVM Capital’s 25 plus years of experience and success in investing
in the health market, the firm’s global network in industry and academia
as well as the relationships we have built regionally to add significant
value to healthcare investment opportunities.”
“Our TVM Capital MENA team will have a strong collaborative relationship
with our founding investors. GE Healthcare will add considerable value
as a strategic partner to TVM Capital MENA with its expertise in
assessing investment opportunities and executing projects in the region.
Our relationship with SHIC will translate into an increased presence in
the Kingdom of Saudi Arabia and other countries, especially in the GCC
and Egypt, where SHIC is a leading investor in healthcare services. The
IFC has a strong presence in several countries in the region and a large
team dedicated to healthcare investments,” He added
A team of professionals led by Managing Director, Marios Fotiadis, will
manage operational investment activities, including all deal sourcing,
origination, assessments, and deal execution. Fotiadis was a General
Partner of TVM Capital in Munich and Boston for two years before taking
charge of the MENA investment operations. He has a 14-year background in
the industry as an M&A banker and multi-national healthcare investor
with Cowen Capital Partners and Advent International. The investment
team also includes Youssef Haidar, formerly a Managing Director at
Unifund Capital, Abu Dhabi, and strategic partner, Munich Medical
International (MMI), represented by Managing Partner, Prof. Dr. Frank
Christ. MMI is a Munich and Dubai-based healthcare services advisory
firm with substantial operating experience in the region.
Marios Fotiadis said: “We believe there is a substantial investment
opportunity in the MENA region, which is experiencing high population
and GDP growth, while being chronically undersupplied, both
qualitatively and quantitatively, in the healthcare sector. We have
fully validated our investment thesis through our ability to develop a
robust and proprietary deal flow, and we will shortly be announcing the
close of our first two investments.”
To establish operations in Dubai, TVM Capital MENA entered into a joint
venture with Boston BioCapital FZ LLC, a Dubai-based advisory firm led
by Hoda Abou-Jamra, a founding partner of the Fund. The partnership
between the two firms covered the coordination of all start-up
activities, access to potential investors, investment opportunities,
professionals and advisors in the region as well as general marketing
and relationship building.
Source
TVM Capital MENA Ltd.,