TVM Capital Healthcare, the UAE arm of Germany-based investment firm TVM Capital, is eyeing investments in digital solutions in Southeast Asia’s (SEA’s) healthcare industry through its new SEA-focused fund, its CEO and chairman Helmut Schuehsler told DealStreetAsia.
The specialist healthcare investment firm, headquartered in Dubai, is in the midst of raising an SEA-focused fund, the target of which is slated to be $200-250 million. It’s expected to achieve the final close during the course of this year, said Schuehsler.
Once raised, TVM Capital Healthcare will look at growth-capital investments in companies that have revenues as diverse as $5 million to up to $200 million. The firm is looking at a ticket size of $10-25 million to support the expansion plans of healthcare companies.
TVM Capital started the pre-marketing process of its SEA-focused fund in late 2018, at about the same time when it raised a new fund for the Middle East. The two processes were conducted after the firm’s third emerging market-focused healthcare fund was pushed to the backburner.
In early 2016, TVM Capital Healthcare launched a $300 million fund, according to media reports.
TVM Capital Healthcare’s plan to invest in digital solutions comes along with the development of certain technological digital solutions in a bouquet of SEA countries such as Singapore, Malaysia, and Indonesia. The digital solutions that are seen in these markets could increasingly emerge in areas of primary care and home care, among others, Schuehsler said, adding that the firm has already held discussions with a slew of potential targets.
Even as digital health solution remains the firm’s key focus, it is also looking at clinching investments in the traditional (non-digital) healthcare sector such as pharmaceutical, medical devices, manufacturing, diagnostics and hospitals, among others.
“I do believe that in the long run, we will see an integration of healthcare services outside hospitals, on digital platforms that are able to manage data and make them available not only to the patient but also to service providers,” Schuehsler said.
Founded in 2010, TVM Capital Healthcare has always invested in companies based in Middle Eastern countries. According to the company’s website, its existing portfolios include Egypt-based medical devices company Amecath Medical Technologies, UAE-based fertility center Bourn Hall International, UAE-based Cambridge Medical and Rehabilitation Center, as well as UAE-based homecare provider Manzil Healthcare Services.
However, over the past three years, the firm has turned its focus on the SEA market. “We expect private healthcare in Southeast Asia will grow and double-digit percentage numbers every year,” said Schuehsler. “Our strategy is not to invest one time and then just let it go. We continue to support the company financially as long as we have shareholders,”
TVM Capital Healthcare’s total asset under management (AUM) currently stands at $150 million. Meanwhile, its parent company TVM Capital manages close to $2 billion. Over the next 2-3 years, TVM Capital Healthcare will continue to review the divestment plan of its existing portfolio companies.
In June 2015, the firm exited UAE-based ProVita International Medical Center thereby selling its stake to local company NMC Health for $160.6 million. Later, in January 2020, the firm sold Abu Dhabi-based Wahat Al Aman Home Healthcare to India’s Aster DM Healthcare or $28.6 million.