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Wednesday, 28 April 2021

Misr Capital, Elevate launch USD 380 mn healthcare platform

Misr Capital and Elevate Private Equity have launched a USD 380 mn healthcare investment platform that’s being billed as the biggest specialist fund of its kind in Egypt and Africa, Misr Capital, Banque Misr’s investment arm said in a press release (pdf). The fund will be named Nile Misr Healthcare.

They’re looking at a USD 150 mn first close, which they expect to wrap up in the first quarter of 2022 after an initial investment from Banque Misr and contribution from Elevate, according to the release. The fund is looking for possible portfolio companies in Egypt, Ghana, Nigeria, Kenya and Cote d’Ivoire in verticals spanning hospitals, pharma manufacturing, medical education and healthtech.

Look for a first transaction soon: “The platform is expected to enter its first sale and purchase agreement (SPA) within weeks upon the completion of all necessary approvals.”

Who’s Elevate? The fund has a successful private equity track record that includes its “strategic management” of fast-growing diagnostics outfit Nile Scan & Labs Co, which has delivered a four-year revenue CAGR of 38%. Elevate CEO Dr. Tarek Moharram, who is also a partner and managing director at Nile Labs, will be CEO of Nile Misr Healthcare, which he says will “actively pursue M&A transactions in the highly-fragmented healthcare spaces across our targeted jurisdictions.”

The investment drivers are clear: Egypt’s growing middle class, the growth of private health ins. and the state’s new universal healthcare program are compelling, says Misr Capital CEO Khalil El Bawab, while rapid economic growth and about 1 bn residents means the rest of the continent is particularly interesting.

Misr Capital is the latest in the field to play up the ESG credentials of its investments, with Banque Misr Vice Chairman (and Misr Capital chairman) Akef El Maghraby saying, “responsible investments come at the top of Misr Capital’s priorities.”

Advisors: Ernst & Young Egypt acted as financial and tax advisor and Alliance Law Firm and Al Kamel Law Firm as legal advisors to Misr Capital. Leverage and Dr. Khaled Moussa acted as financial advisor and legal counsel, respectively, to Elevate Private Equity.

OTHER INVESTMENT NEWS

Apache’s JVs with the government, Khalda Petroleum and Qaroun Petroleum, plans to spend USD 1.1 bn on exploration as well as development of properties at their Western Desert oil and gas concessions next fiscal year, according to an Oil Ministry statement. Khalda and Qaroun are both JVs between the US oil and gas giant the Egyptian General Petroleum Corporation (EGPC).

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