Malaysia-based private equity firm Navis Capital Partners on Monday announced it has completed a majority investment in healthcare services provider Aurelius Healthcare.
Aurelius Healthcare is a specialist in tertiary and private healthcare management and offers customised hospital management solutions.
“This investment will accelerate the provision of private healthcare services to relatively affluent but under-served communities across Malaysia,” said Navis Capital co-founder and managing partner Nicholas Bloy.
Navis made the investment through Navis Asia Fund VIII, for which it is seeking to raise up to $1.9 billion. It is learnt to have raised over $1 billion for this vehicle by 2019-end.
The capital injection from Navis will help Aurelius invest in brownfield and late-stage greenfield hospital opportunities primarily in Malaysia.
The team is led by Amir Firdaus, who brings 25 years of healthcare experience with him, having worked with major healthcare groups in Malaysia, Southeast Asia and the Middle East, Navis said in a statement.
Currently, Aurelius has signed definitive agreements for two tertiary hospitals – a 100-bed hospital and a 200-bed hospital, which will be operational in 12-15 months – at an enterprise value of about $80 million.
The firm is also in active discussions for another four to five opportunities and will seek to expand this pipeline rapidly with Navis’s participation, the PE firm said.
Navis said it is committed to have 5 to 10 hospitals operating within the Aurelius platform during its investment holding period. “The investment will grow as we add new hospitals to the platforms. We expect to invest at least $100 million,” Bloy added.
Malaysia’s healthcare market is projected to grow at an 8-10% compound annual growth rate (CAGR) over the next few years. Demand for private healthcare in the country is being driven by growth in the middle-income segment, an ageing population, rising insurance penetration and under-investment in public hospitals over the past years. In particular, there is a gap in high-quality care outside the Klang Valley for the middle-income population.
Navis said it will work closely with Aurelius on merger and acquisitions opportunities, on the provision of growth capital and on the institutionalisation of the platform itself in terms of governance and best practices.
Founded in 1998, Navis manages approximately $5 billion in private equity capital and focuses on investments primarily in and around Asia.
Healthcare assets in its portfolio include Device Technologies, an Australia-based distributor of medical equipment and consumables; Tawada Healthcare, an Indonesian healthcare, medical devices, and medical consumables provider; Vietnam’s hospital operator Hanoi French Hospital; B Medical Systems, a Luxembourg-based manufacturer and distributor of medical refrigeration devices; and Vietnam Pharmaceutical company OPV.