IDB Infra Fund II in Gulf healthcare investment

The $750m fund has bought into the Avivo Group, which runs 32 healthcare facilities across the GCC region.

The Islamic Development Bank-sponsored IDB Infrastructure Fund II has bought into Avivo Group, one of the largest healthcare providers in the Gulf region, for an undisclosed amount.

The $750 million fund, managed by Asma Capital Partners, is entering Avivo at a time when the healthcare provider is looking to expand its geographic footprint. 

“Avivo has grown tremendously in the past five years across multiple locations and diverse specialties. Avivo is set to enter Oman, Qatar, Saudi Arabia and Southeast Asia over the next phase of growth. During the next two years, Avivo will be present in five of the six Gulf countries,” Avivo chief executive and board member Amitava Ghosal stated.

Chairman Shailesh Dash added the investment from IDB Infrastructure Fund II “will bring more value to Avivo’s upcoming IPO”.

Established in 2011, Avivo owns and operates 32 healthcare facilities, including two hospitals, 14 specialty centres, eight high-end dental centres, six pharmacies and two diagnostic facilities. The group, owned by MENA private equity firm A M Partners, caters to more than 1.3 million patients and employs over 200 doctors.

In addition to the Islamic Development Bank, the IDB Infrastructure Fund II, launched in 2014, is backed by Saudi Arabia’s Public Pension Agency and Public Investment Fund; Bahrain’s Ministry of Finance; and the Ministry of Finance of the Sultanate of Brunei Darussalam. The fund can invest in power, energy, transportation, waste and water, telecoms and social infrastructure across the Islamic Development Bank’s 57 member countries.

It succeeds the $730 million IDB Infrastructure Fund, which returned 18 percent and achieved an investment multiple of 1.7 times, according to Asma Capital Partners’ website.