Misr Capital S.A.E.and Elevate HealthcareLaunch“Nile Misr Healthcare”a USD 380 Million Healthcare Investment Platform
The platform, considered Egyptand Africa’s largest private equity healthcare platform, willinvest across all healthcare verticals in the continent.
Misr Capital S.A.E. (Misr Capital), the investment arm of Banque Misr, and Elevate Private Equity, announced today the launch of aUSD 380 million healthcare investment platform, “Nile Misr Scan & Labs”. Elevate Private Equityhas built a strong track record of achieving 38% CAGR over the past four years as the strategic manager of Nile Scan & Labs Co, effectively making it the fastest growing healthcare entity in Egypt and the region.
The platform, “Nile Misr Healthcare”,is structured onthe strong investmentand medical expertiseof the two partners, whowill actively manage the fund strategy and acquire highly selective targets withstrong potential across healthcare verticalsspanning hospitals, diagnostic facilities, pharmaceuticals, medical education,and digital medical services among othersin Egypt and Sub-Saharan Africa.
Akef El Maghraby, Chairman of Misr Capital and Vice Chairman at Banque Misr stated, “Responsible investments come at the top of Misr Capital’s priorities, especially in sectors like healthcare that contribute to the society in which we operate.”
“Investing in healthcare not only adds positive, real value to the society, but also comes in line with SDG 3 of the UN’s sustainable development goals and the United Nation’s Principles of Responsible Investments,” He added.
Commenting on opportunities in the domestic market, Khalil El Bawab, CEO of Misr Capital stated, “Egypt has a growing middle class,andthe country is witnessing a continuous increase in private medical insurance penetration. Furthermore,the government’s ambitious goalto cover all Egyptians under a universal health insurance program over the next fifteen years in partnership with the WHOmakesthis strategic move comeat a very opportune time for Misr Capital as we embark on our journey to enter the healthcare investments space.”
“With a population of over 1 billion citizens and the IMF projecting GDP growth of approximately 4%1in 2022 in Sub-Saharan Africa, the continent provides a multitude of opportunities for private healthcare investments that we are keen on conquering through this partnership,” Added KhalilEl Bawab.
Capitalizing on the first secured commitment from Banque Misr, the platform managers are looking to raise USD 150 million before the first closing in Q1 2022, after seeding initial investments Banque Misr’s cash commitment and ElevatePrivate Equity’s in-kind contribution to the platform.Dr. Tarek Moharram, a healthcare veteran with over 14 years ofexperience in managing, developing,and growing medical entities in Egypt,will take the helm as chief executive officerof the platform.
“This partnership leverages the technical and strategic expertise of Elevate Private Equity with Misr Capital’s renowned financial and investment track-record; effectuallyforming a platform that willactively pursueM&A transactions in thehighly-fragmented healthcare spacesacrossour targeted jurisdictions.Our long-term strategy is toestablish larger, consolidatedentities thatprovide comprehensive, world-class healthcare tolarger populationsacross Egypt and Sub-Saharan Africa, in addition to creatinga positiveimpact on the wider economieswhiledeliveringsuperior returns to investors,” Commented Dr. Tarek Moharram, CEO of Elevate.
“Most importantly,the platform is built ona comprehensive skill-set thatbrings to the tableveteran healthcare experts, seasoned financeprofessionals, and a strong line-up of experienced investorsbacked by Banque Misr, one of the oldest and most renowned banks in Africa,” He added.
The platform is expected to enter its first sale and purchase agreement (SPA) within weeks upon the completion of all necessary approvals. Ernst & Young Egypt acted as the financial and tax advisor and Alliance Law Firm and Al Kamel Law Firm as the legal advisorstoMisr Capital. Leverage and Dr. Khaled Moussa acted as the financial advisor and legal counsel toElevatePrivate Equity,respectively.