TVM Capital Healthcare launches $250m fund for Saudi medical firms

Saudi medical companies stand to benefit as private equity firm TVM Capital Healthcare unveils its second pool of funding valued at $250 million for the Middle East.

Since 2009, the international growth capital investment fund has operated in the Middle East, expanding to Southeast Asia in 2021.

The launch of the new fund builds on the firm’s past successes in the region, delivering compelling returns and showcasing its expertise in sourcing deals and nurturing the growth of sustainable enterprises, according to a press release.

Bandr Al-Homaly, managing director and CEO of Jada Fund of Funds, said that the closing of the deal marks an important milestone in mobilizing private capital into Saudi Arabia’s healthcare sector.

“We are pleased to lead the investment, providing capital to support the development of the sector in line with Vision 2030,” he said.

TVM Capital focuses on addressing medical needs through strategic investments in entrepreneurial ventures.

These efforts bring about lasting positive impacts in local communities and offer significant returns for investors, it said.

The firm said it has built a reputation as an international fund manager involved in financing and overseeing major medical companies within the Kingdom.

The company also invests in healthcare growth deals in Europe and the US to support these firms’ expansion plans for Saudi Arabia and the wider Gulf Cooperation Council.

With this two-pronged strategy, TVM Capital aims to bolster the Saudi economy and enhance the region’s access to cutting-edge products, technologies, and services.

Chairman and CEO Helmut M. Schuehsler expressed pride in attracting a notable consortium of institutional and family investment groups from Saudi Arabia, other GCC countries, and Europe. They are investing in a specialized capital pool dedicated to domestic companies in the Kingdom and international firms entering the market.

“We are uniquely positioned for success because our leadership team comprises executives with long-standing expertise in Europe and the US, who have built excellent international networks throughout their careers, alongside local Saudi healthcare experts,” he said.

The chairman noted that their investment journey in the GCC and Egypt spans over 13 years, with a specific focus on Saudi Arabia since 2015 through their previous portfolio companies, ProVita International Medical Center and Cambridge International Medical Center.

“Today, we are truly excited about our ability to enhance the local and regional healthcare ecosystem at a much larger scale, helping to improve access to high-quality patient care, medical products, and treatment regimens across the Kingdom,” Schuehsler said.

Among the initial investments of the fund are Baraya Extended Care, a chain of long-term, post-acute care and rehabilitation clinics based in Riyadh; and DEBx Medical, a developer and manufacturer of innovative products for chronic wound treatment based in Amsterdam, which is set to enter the Saudi market. Additionally, neurocare group, a provider of personalized mental health services and products headquartered in Munich, with clinics in the US, the Netherlands, and Australia, is gearing up to enter Saudi Arabia and the GCC.

According to the statement, additional deals encompass longevity and genomics, oncology and pharmaceuticals, as well as manufacturing and diagnostics.

TVM Capital operates offices in Riyadh, Dubai, Singapore, and Ho Chi Minh City, with supporting offices in Munich and Boston.

The multinational law firm Morgan Lewis represented the firm in the fundraiser.