The Abraaj Group has realised its investment in Daniel O. Mercado Medical Center, a tertiary medical hospital based in the Philippines. Abraaj, through one of its Funds, invested in DMMC in September 2010 as the only institutional investor alongside the Mercado family.
The Abraaj Group (Abraaj), a leading investor operating in growth markets, has announced a full exit from its investment in Daniel O. Mercado Medical Center (DMMC), a leading tertiary medical hospital based in the Philippines.
Abraaj, through one of its Funds, invested in DMMC in September 2010 as the only institutional investor alongside the Mercado family. With Abraaj’s support and funding, DMMC constructed the Mercado Ambulatory and Surgical Center (MASCI), a state-of-the-art diagnostic and outpatient facility.
As a result, DMMC was able to expand its market reach, service offering and patient numbers, with its outpatient census increasing by 19.5 per cent in 2012. In MASCI, outpatient census grew by 41.1 per cent, with outpatient surgical procedures growing 99.1 per cent last year compared to 2011.
Abraaj helped to identify and recruit a new Chief Financial Officer for DMMC which bolstered the operations ahead of the next phase of DMMC’s growth. Abraaj also enhanced the environmental, social and governance (ESG) credentials of DMMC through the development of additional surgical governance measures and pollution control practices, and ensuring the provision of internal training on corporate governance.
Commenting on the exit, Danny Lizares, Managing Director and Country Head Philippines, The Abraaj Group, said: “This was an attractive investment opportunity for us to make in a growing sector where demand for beds far outweighed supply, with the potential to support a highly experienced management team and scale a well-established, multi-credited hospital. We succeeded in our aim to further facilitate the provision of quality healthcare for the mass market, offering state-of-the-art medical services at competitive prices. We wish DMMC all the best for the future and believe they are now well positioned to continue their growth trajectory.”
Abraaj’s exit was executed through a buy back arrangement with the Mercado family.
In the South East Asia region, Abraaj has recently exited other businesses in the healthcare sector – Vejthani Hospital and IHH Healthcare, which was the third largest IPO globally at the time in 2012. In the Philippines, Abraaj currently has two investments – Pancake House, a fast, casual dining chain and HBC, a leading retailer of beauty and personal care products – having exited others over the last two years.
For more information please contact:
T: +971 (0) 562 864 290
T: +971 (0) 553 387 748
THE ABRAAJ GROUP
The Abraaj Group is a leading investor operating in the growth markets of Asia, MENA, Turkey and Central Asia, Sub-Saharan Africa and Latin America. In 2012 it completed the merger of Aureos Capital, thereby creating the deepest bench of private equity experience across growth markets.
Employing over 300 people, the Group has over 30 offices spread across 6 regional hubs in Dubai, Istanbul, Mexico City, Mumbai, Nairobi and Singapore. Local presence across these markets provides the Group with unmatched expertise, know-how, proprietary transactional access and the ability to grow partner businesses across borders.
The Abraaj Group currently manages US$ 7.5 billion across 25 sector and country-specific Funds, encompassing private equity (majority and significant minority investments with ticket sizes between US$ 10 million to US$ 100 million) and real estate (primarily yield-generating) investments.
Funds managed by the Group have holdings in over 150 partner companies that collectively employ over 200,000 people and create sustainable value in sectors including manufacturing, education, retail, aviation, oil and gas, financial payments infrastructure, healthcare and agribusiness. The Group’s current partner companies include industry leaders such as Network International, the largest independent payment solutions provider in the Middle East and Africa, NEP Holding, with its Diamond brand and a market leader in the residential filtration market of Malaysia (with a growing presence in Singapore, Hong Kong, Taiwan and Southern China), Brookside Dairy, the leading dairy in East Africa and, Iasacorp, a long established family run women’s retail business in Peru.
The Group has set the standard for private equity investing in growth markets, having returned c. US$ 4 billion to investors from over 60 full and partial exits, providing industry leading returns across a range of companies that have emerged as today’s regional champions and tomorrow’s global challengers.
The Abraaj Group has an investor base of 300, including corporates, development finance institutions, financial institutions, pension funds, sovereign wealth funds, family offices, high net worth individuals and other institutional investors from Asia, Africa, the Americas, Europe and the Middle East.
The Abraaj Group is committed to the highest environmental, stakeholder engagement and corporate governance standards. The Group is a signatory to the United Nations-backed Principles for Responsible Investment and the United Nations Global Compact. The Group’s founder, Arif Naqvi, was appointed to the United Nations Global Compact Board by UN Secretary-General, Ban Ki-moon in 2012. In 2013 Mr Naqvi was awarded the Oslo Business for Peace Award, one of the highest forms of recognition given to global business leaders for fostering peace and stability through creating shared values between business and society.
Through its social investing programme, The Abraaj Group has supported best in class organisations focused on entrepreneurship and job creation, healthcare, education and community engagement and thereby enabled a deep-rooted and sustainable impact on the economic landscape of the markets in which it operates.
This publication is issued by Abraaj Capital Limited (ACLD), a member of The Abraaj Group that is authorised and regulated by the Dubai Financial Services Authority (“DFSA”). Several Group members are regulated by a number of international regulatory authorities including the DFSA under whose rules ACLD has issued this publication.