Cairo: The Sovereign Fund of Egypt (TSFE) and the New York based investment manager, Concord International Investments (Concord International), announced today the signing of a memorandum of understanding (MOU) which entails the cooperation of the two entities to establish a joint venture to raise and manage a specialized healthcare fund that will invest primarily in Egypt, as well as the Middle East and Africa.
The fund is one of several that will be established in the sector with the objective of creating a diversified healthcare platform that benefits from the ever-growing population in Egypt in need of various healthcare services. The fund also targets the creation of international export oriented healthcare entities covering the various activities, the unlocking of value in promising growth companies, under-utilized assets and untapped specialties to be able to capitalize on Egypt’s unique location and relatively lower services and production costs to serve Europe, the Middle East and Africa.
The fund’s initial target size is USD 300 million with the aim of achieving long-term capital appreciation by taking advantage of opportunities for direct investments in Egypt. The fund will act as a catalyst to attracting sizable foreign direct investments as well as identifying co-investment opportunities in significantly large projects.
“Investing in healthcare is a priority for the Egyptian government at this critical time when the world is facing the new COVID-19 pandemic crisis and the quality of the population’s healthcare is an integral part of the Egypt 2030 Vision for Sustainable Development. Focusing on the healthcare sector is directly related to the Egyptian government’s program to improve the quality of life for Egyptians by creating a fully integrated healthcare system that can improve healthcare indicators and achieve full coverage for all Egyptians. This diversified healthcare fund reflects the implementation of TSFE’s mandate to fast track attracting investments to public assets in a value accretive manner, while increasing private sector participation in the Egyptian economy, where the private sector is a main partner in the development path and will be responsible for implementing the greater share of the projects while the government takes on the regulatory role of setting standards and monitoring”, said H.E. Dr. Hala El Said, Minister of Planning and Economic Development and TSFE’s Chairperson.
“TSFE and Concord International have started the process to establish a joint venture management company to source and manage investments on a non-exclusive basis, in a healthcare services and pharmaceutical fund to achieve long term capital appreciation in public and private assets. We are delighted with this partnership and we look forward to benefit from Concord’s extensive experience across the healthcare spectrum”, said Ayman Soliman, TSFE’s Chief Executive Officer.
“TSFE’s role in attracting investments to such assets is key at this challenging time when there is a pressing need to invest in upgrading and expanding healthcare facilities. With the COVID-19 global pandemic still looming over the global economy, it is essential for us to be agile and create solutions that could and will elevate the strain the virus has caused over the healthcare systems in the region and on a global front. Both the healthcare and the pharmaceutical sectors have been on the top of the fund’s priority list, and today’s MOU signing culminates our collective efforts in securing FDI in those fields”, Soliman added.
“The Concord Group wishes to thank Her Excellency Dr. Hala El Said, Minister of Planning and Economic Development and TSFE’s Chairperson, and Mr. Ayman Soliman, TSFE’s Chief Executive Officer, for selecting us as a partner in creating this Fund. We believe that with The Sovereign Fund’s strong management team combined with strong government support and Concord’s seasoned management team we should reach the ambitious goals mentioned above.
The demand for this industry, which covers pharmaceutical producers, diagnostic service providers such as pathology labs, diagnostic imaging services, nursing care, hospitals, polyclinics and other specialized facilities, will continue to grow at an annualized double digit rate in some segments in the foreseeable future. The fund will be selecting promising investments from both private and public companies to create a diversified healthcare fund with the objective of maximizing the value of these assets over the investment horizon.
The tremendous opportunities for expansion in the Middle East and Africa using the resources of Egypt’s large growing market, provides the Fund with a unique opportunity”, said Mohamed Younes, the Chairman of Concord Group.
© Press Release 2020
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