Emirates Investment Bank has started convincing their clients to invest in healthcare deals in the KSA and the UAE for the private placement of assets and their outright sales.
Husam Kutaifan, managing director of Investment Banking at Emirates Investment Bank told Gulf News that they are very active in Saudi Arabia and UAE hospitals, clinics, and specialty clinics. They have advised some healthcare providers in Saudi Arabia to raise capital. He further added that this will be a private equity sale of a previously privately held company. A significant minority or majority stake will be bought by a single entity.
EIB is also working with a healthcare company based in Jordan and is helping them raise a capital of $15-$20 million.
Kutaifan says that they are working on a big transaction, which could go as big as Dh800 million. Furthermore, they’re also supervising a transaction worth Dh400 million.
EIB had to face many challenges in this journey of theirs.
Kutaifan says that private equity firms have been exiting the markets because of them having soft conditions. Exiting for a private equity firm is possible if they have the right size and story. Having just the right size can help them list themselves in London. However, most Pes are looking for secondary sale or a stake sale to a strategic buyer.
The overhang of Abraaj Saga has also been a prevailing challenge for PE firms.
Abraaj has been the biggest leveraged buyout firm in Dubai. But recently, it has closed because of a run in the rough weather. This includes accusations from the Bill and Melinda Gates Foundation on the firm of combining its $1 billion health funds with other funds.
Kutaifan concludes that investors want to keep their money safe. They prefer to invest their money where it’s safe. Specifically in identified, accurate deals rather than blind pools.