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RIYADH: Saudi healthcare companies will benefit as private equity firm TVM Capital Healthcare unveils a second $250 million funding pot for the Middle East.

The international growth capital investment fund has been operating in the Middle East since 2009, and in 2021 it will expand its operations to Southeast Asia.

According to a press release, the launch of the new fund builds on the company’s past success in the region, delivering attractive returns and showcasing expertise in sourcing deals and supporting the development of sustainable businesses.

Bandr Al-Homaly, managing director and CEO of Jada Fund of Funds, said the completion of the transaction marks an important milestone in the mobilization of private capital in the healthcare sector in Saudi Arabia.

“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 meeting medical needs through strategic investments in entrepreneurial ventures.

These efforts have been found to have lasting positive impacts on local communities and offer significant returns to investors.

The company said it has developed a reputation as an international fund manager involved in financing and overseeing major healthcare companies in the Kingdom.

The company is also investing in healthcare development deals in Europe and the US to support these companies’ expansion plans in Saudi Arabia and the wider Gulf Cooperation Council.

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

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

“We have a unique opportunity for success because our leadership team consists of executives with many years of experience in Europe and the US who have built excellent international networks throughout their careers, together with local Saudi healthcare experts,” he said.

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

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

The fund’s initial investments include Baraya Extended Care, a Riyad-based network of long-term post-acute care and rehabilitation clinics; and DEBx Medical, an Amsterdam-based developer and manufacturer of innovative products for the treatment of chronic wounds, which is expected to enter the Saudi market. Additionally, Neurocare Group, a Munich-based provider of personalized mental health services and products with clinics in the US, the Netherlands and Australia, is preparing to enter the Saudi Arabia and GCC market.

Additional deals include longevity and genomics, oncology and pharmaceuticals, as well as manufacturing and diagnostics, according to the statement.

TVM Capital has offices in Riyad, Dubai, Singapore and Ho Chi Minh City, and subsidiary offices in Munich and Boston.

The company was represented by the international law firm Morgan Lewis in the fundraiser.