TPG-backed Evercare sells stake in Kenyan hospital group
The Metro Group (TMG), a healthcare provider in Kenya, has completed the acquisition of the Evercare Health Fund’s majority shareholding in Metropolitan Hospital Holdings Limited (MHHL), the holding company that owns Metropolitan Hospital and Ladnan Hospital.
The Evercare Health Fund is a $1 billion emerging markets healthcare fund managed by TPG and backed by its global impact investing platform TPG Rise.
The transaction will enable the hospitals to continue on their growth trajectories while maintaining their commitment to delivering high quality and accessible healthcare services in underserved communities. With the close of the transaction, TMG now assumes majority ownership of MHHL. Terms of the transaction were not disclosed.
Through Evercare and TMG’s investment over more than a half of a decade, Metropolitan Hospital has seen extensive operational improvements and enhancements and has raised the bar for healthcare provision in Kenya.
Matthew Hobart, chairman of Evercare’s board of directors and co-managing partner of TPG Growth who leads healthcare investments for TPG Rise said, “Since our investment in Metropolitan Hospitals, we’ve provided nearly 300,000 patient episodes of care. MHHL was the first tertiary care provider in East Nairobi and offers secondary and limited tertiary care services across a range of specialties, demonstrating that impact-driven private capital can deliver well-managed, patient-centric healthcare to the communities that need it most. This transaction is a testament to the success of our collaboration with TMG and we are grateful for their partnership over the course of our investment. Under the stewardship of TMG, the founders of the Metropolitan Hospital, we believe the hospitals are well-positioned to continue on their growth trajectories.”
TMG is a public limited company that was founded by a group of young healthcare professionals in mid-1994. Its flagship project was Metropolitan Hospital which became part of the Evercare Healthcare system when it partnered with an external investor in Metropolitan Hospital and Ladnan Hospital. TMG then took on the role of a co-investor in the two hospitals through its shareholding in MHHL.
The private healthcare sector in Kenya is a prominent contributor to healthcare outcomes in the country as it currently provides 52% of all healthcare services and will continue to play a bigger role in the future. Channelling private sector funding towards the healthcare sector is therefore key to fill in gaps in patient care, especially among traditionally underserved communities. The private sector investment in healthcare helps alleviate the burden on local healthcare systems through supplementing both preventative and specialised care.