GE Healthcare, the health technology division of diversified conglomerate General Electric, has agreed to be the anchor investor in a $200m healthcare-focused fund formed by investment bank EFG Hermes.
Multilateral development finance provider African Development Bank (AfDB) has also committed to being a limited partner in the fund, though neither revealed the size of their commitments.
The fund, Rx Healthcare Fund, has a target size of $200m and will focus on companies that can help meet the demand for high-quality and affordable healthcare across Africa. Hatem El Gabaly, formerly the Egyptian minister of health, will lead the fund.
Rx’s investment strategy will be to target opportunities in the specialised hospitals, medical diagnostics and pharmaceutical sectors, in Kenya, Nigeria, Ethiopia, Egypt, Tunisia and Morocco.
Hatem El Gabaly said: “Importantly, GE Healthcare’s added value to Rx goes far beyond its financial investment: We view GE Healthcare and AfDB as strategic partners who would bring deep industry and geography specific knowledge in many of our target markets.
“We believe our fund will offer a unique value proposition to the potential investors, in which it will be supported by veteran healthcare professionals, seasoned private equity professionals and experienced investors.”
– Picture courtesy of Rx Healthcare Management