Rx Healthcare Fund adds GE Healthcare to LP rosterAfrica Capital Digest
Rx Healthcare Fund, a new private equity fund raising $200 million for investments across Africa, has landed GE Healthcare as an anchor Limited Partner. The amount of capital for what is described as a minority investment was not disclosed, although it is contingent on the fund successfully completing its fundraise. In October last year, the African Development Bank committed $20 million in capital to the Fund hoping to catalyze further commitments from African capital providers as well as other development finance institutions and international commercial investors.
The new fund is a joint venture between EFG-Hermes Private Equity and a newly set up fund management firm, domiciled in Mauritius. The firm, which is headed up by a former Egyptian Minister of Health, Dr. Hatem El Gabaly, will target high growth opportunities in the healthcare sectors, with an emphasis on specialized hospitals, medical diagnostics and pharmaceuticals businesses. While the fund will have a pan-African focus, its expected to concentrate on opportunities in Egypt, Ethiopia, Kenya, Morocco, Nigeria and Tunisia.
“We’re delighted to have completed our lineup of potential anchor limited partners with GE Healthcare, an unrivaled industry specialist with a footprint in more than 100 countries across the world, and African Development Bank, the continent’s leading development finance institution,” said Dr. El Gabaly. “Importantly, GE Healthcare’s added value to Rx goes far beyond its financial investment: We view GE Healthcare and AfDB as strategic partners who would bring deep industry and geography specific knowledge in many of our target markets. ”
With the number of healthcare-focused private equity firms capable of building integrated healthcare ecosystems across healthcare facilities, service providers and equipment being limited currently, the fund aims to capitalize on its managers’ expertise and networks to build a platform of high-quality, specialized yet affordable healthcare services for the continent’s growing middle class.