PE firm Navis said to mull exiting investment in Hanoi French Hospital

Hanoi, Vietnam. Photo by Florian Wehde on Unsplash

Southeast Asia-focused private equity firm Navis Capital Partners is looking to exit its investment in Vietnam’s Hanoi French Hospital (HFH), people familiar with the development told DealStreetAsia.

Internal preparations for the exit have begun and the PE firm has started sending out feelers to potential buyers. The formal process, however, is expected to be launched in early 2020.

Navis Capital had bought a stake in HFH in June 2016 for an undisclosed sum from Australian company Indochina Medical Co. While it never disclosed the quantum of the stake it owns in the Vietnamese firm, the PE firm typically buys a controlling stake in its portfolio companies.

When contacted, a Navis Capital spokesperson declined to comment for this story. Meanwhile, an email sent to HFH did not elicit any response.

Established in 1996, HFH is a private hospital that employs over 50 full-time doctors, per its website. It has around 75 beds and plans to increase the number to 150 beds by 2021, one of the sources close to the hospital said. “The capacity extension will support HFH’s EBITDA growth in next two years,” the person added.

The valuation of the hospital is expected to be based on the average EV/EBITDA of its businesses across Southeast Asia countries that stands at mid-20x of the revenue, the source added. Currently, HFH’s annual revenue is pegged at around $30 million.

Between 2012 and 2017, the hospital market in Vietnam recorded a growth of 7.8 per cent CAGR, according to a report by Ken Research published in March 2018. The growth was driven by healthcare investments by the government and private players as well as liberalisation of foreign investment into the country.

Major private hospital operators in the country include Vietnam France General Hospital, Hoan My Private General Hospital, Phu Tho Private General Hospital, Trien An Private General Hospital, and Hong Ngoc Private General Hospital. The total number of public and private hospitals in Vietnam is expected to exceed 1,890 by 2022.

Founded in 1998, Navis Capital manages several private and public equity funds for a total of $5 billion. The PE firm’s investors include commercial and investment banks, pension funds, insurance companies, corporations, foundations, and also high net worth individuals and family offices from markets such as the US, Europe, Middle East and Asia.

Earlier this year, Navis made headlines for reportedly initiating the sale process of its Asian business portfolio Evolution Wellness. The PE firm is understood to be looking at listing the wellness company in Thailand Stock Exchange (SET) next year. Navis and its partner Oaktree Capital are rumoured to be seeking a $1-billion valuation for the entity.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.