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US fund cleared to take over Avenue Park, Metropolitan owner

Sunday, July 28, 2019 22:00

TPG is poised to take over Avenue, Nairobi Women’s, Metropolitan and Ladnan hospitals from Abraaj Group.

The Nairobi Women’s Hospital. FILE PHOTO | NMG 

IN SUMMARY

  • TPG, to be renamed Evercare Health Fund, will oversee the hospital’s operations on behalf of the Bill & Melinda Gates Foundation and US pension funds that provided financing exclusively spent in healthcare investments as Abraaj Growth Markets Health Fund LP (AGHF)
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A US private equity fund is poised to take over Avenue, Nairobi Women’s, Metropolitan and Ladnan hospitals from troubled Abraaj after a clearance from the competition watchdog.

The Competition Authority of Kenya (CAK) said TPG, to be renamed Evercare Health Fund, will oversee the hospital’s operations on behalf of the Bill & Melinda Gates Foundation and US pension funds that provided financing exclusively spent in healthcare investments as Abraaj Growth Markets Health Fund LP (AGHF)

“The proposed investment by TPG in assets held by Abraaj Growth Markets Health Fund LP and Abraaj Growth Markets Health Fund (B) L.P has been authorised,” CAK director general Wang’ombe Kariuki said.

The takeover ends speculation over the fate of the four private hospitals based in Nairobi with 10 satellite hospitals and 18 clinics across Kenya with a total of 700 beds.

The deal was overseen by US consulting firm AlixPartners which represented the US investors in the ongoing liquidation of the Dubai-based Abraaj Holdings.

The investors said this ensures the long-term survival of the Kenyan investments that are part of healthcare properties in Kenya, Nigeria and Pakistan bought using part of the AGHF’s Sh103 billion ($1 billion) kitty.

Abraaj Group voluntarily ended its operations via a provisional liquidation suit which allowed it to dispose of assets to raise funds for use in repaying mature debt it owed various entities.

This saw the US investors oppose disposal of healthcare facilities bought under the AGHF fund saying it was a secured facility that ought to be separated from Abraaj’s financial woes.

Other Abraaj properties taken over by other investors in Kenya include a 10 percent stake in leading dairy processor Brookside Dairy and a 100 percent stake in coffee chain, Java that were bought by UK private equity Fund Actis.

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