Financial details of the investment were not disclosed. ARQCapital, established in 2014 by Edmund Solilapsi and Abigail Tan, said Medline will use the investment to build new free-standing affordable dialysis centres.
The investment comes on the heels of the rising need for dialysis treatment in the Philippines. According to the National Kidney and Transplant Institute, one citizen every hour — or about 120 Filipinos per million population per year — develop chronic renal failure.
The country’s Department of Health also estimates that the number of cases of kidney diseases is increasing at a rate of 10 to 15 per cent each year.
However, only 2 in 3 patients diagnosed with end-stage renal disease are going through dialysis due to the cost of treatment and the shortage of dialysis centres in the country, ARQCapital said.
Medline was established in 2015 by brothers Alexander and Bong Lim, with the aim of becoming one of the major players in the highly fragmented $300-million Philippines hemodialysis market.
The company has been adding an average of two new franchises every month with plans to add 20 franchises over the coming 12 months in Baguio, Cavite, Laguna, Batangas, Cebu, Davao, and Cagayan de Oro.
The investment bodes well for ARQCapital, whose goal is to address the needs of challenged SMEs in the Philippines. The firm’s investment strategy combines growth capital with customised business assistance to build stronger companies in the Philippines.
Solilapsi, one of the founders, was formerly a consultant for Philippine investments at TAEL Partners, a Southeast Asian growth capital private equity fund. He was also formerly an Associate for the Asia Corporate Finance team of ING Bank in the Philippines, doing M&A advisory work for Philippine corporations.