TPG’s healthcare platform Evercare seals an exit in Africa

 TPG’s healthcare platform Evercare seals an exit in Africa

Evercare Group, the emerging markets healthcare platform of global private equity firm TPG, has sealed a portfolio divestment in Africa.

Evercare is wholly owned by Evercare Health Fund, a $1 billion vehicle managed by TPG and backed by its impact investing platform TPG Rise. The Africa exit comes soon after a planned exit from a South Asian asset came unstuck.

The Metro Group Plc (TMG) has completed the acquisition of the Evercare Health Fund’s majority shareholding in Metropolitan Hospital Holdings (MHHL), the holding company that owns Metropolitan Hospital and Ladnan Hospital in Kenya. Terms of the transaction were not disclosed.

Through Evercare and TMG’s investment over more than a half of a decade, Metropolitan Hospital has seen extensive operational improvements and enhancements including expansion of bed capacity to 160, introduction of modular theatres, a medical plaza that hosts over 40 consultants.

As part of the transaction, Evercare’s board representatives, Jide Olanrewaju, Dumani Kula, Thomas Verghese and Lawrence Ndombi, have stepped down from the board of MHHL and will be replaced by new directors from TMG.

Matthew Hobart, Chairman of Evercare and co-Managing Partner of TPG Growth who leads healthcare investments for TPG Rise, said, “Since our investment in Metropolitan Hospitals, we’ve provided nearly 300,000 patient episodes of care. MHHL was the first tertiary care provider in East Nairobi and offers secondary and limited tertiary care services across a range of specialties, demonstrating that impact-driven private capital can deliver well-managed, patient-centric healthcare to the communities that need it most.”

Established in 1994, the Metropolitan Hospital employs over 350 staff and is equipped to handle complex to highly specialized cases that are backed up by seven theatres, a 24-hour dialysis centre,14-bed adult ICU, 4-bed Neonatal ICU and 10-bed casualty receiving facility.

McKay Advocates acted as legal counsel to TMG. Debevoise & Plimpton LLP acted as international legal counsel, Bowmans LLP as local counsel to the Evercare Group for the transaction and I&M Burbidge and Nedbank acted as joint financial advisors.

TMG was founded by a group of healthcare professionals in mid-1994 as Metropolitan Health Services (MHS). They sold shares in the company to the public attracting over 500 shareholders. Its flagship project was Metropolitan Hospital that is located in Buruburu.

As it attracted Evercare as an investor, it took on the role of a co-investor in the two hospitals through its shareholding in MHHL. TMG has now purchased a majority shareholding in MHHL, giving it effective control of both Metropolitan and Ladnan Hospitals.

Vivek Sinha

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