Collectively referred to as “the Fund”, RH Managers (Pty) Ltd and Bophelo Healthcare Fund are targeting three healthcare infrastructure segments, namely Acute, Sub-Acute and Primary Healthcare.

 

The Acute sector

The goals for the Fund, within the acute sector, are to support emerging healthcare service providers and to consolidate these service providers into a self-managing and functioning group.

The objectives are:

• To provide an acute healthcare service that will rival the industry’s leading companies

• To benefit from increased economies of scale

• To increase bargaining power with medical organisations

• To strengthen standing in order to explore exit options including an IPO[A1] 

The Fund will achieve these objectives by making direct- and indirect-geared investments in greenfield hospital projects.  

 

The Sub-Acute sector

The Fund has three objectives in the sub-acute sector, which are:

• To identify existing quality sub-acute service providers

• To make sub-acute facilities the recognised and accepted recovery and rehabilitation facilities of choice, where necessary

• To grow the sub-acute sector and offer patients a medically viable and sustainable cost saving alternative to acute medical services

• To grow this sector into a viable option for medical investors

• To create a dominant healthcare group in the sub-acute sector.

The Fund intends to invest in sub-acute operators in order to:

• Leverage off existing service providers’ expertise in managing the recuperation of patients

• Attain access to new sub-acute opportunities identified by existing service providers.

The Primary Healthcare sector

 

The Fund’s strategy is to build a large network of primary healthcare facilities that will be operated through management contracts with existing and reliable healthcare service providers.

 

The primary care facilities will also be used to refer patients to the Fund’s other facilities and, in doing so, increase the healthcare infrastructure footprint across South Africa.

 

Investment Philosophy

The RH Managers (Pty) Ltd and Bophelo Healthcare Fund seeks to create value with the following investment process:

• To identify existing quality sub-acute service providers

• Identifying viable opportunities that are at bankable feasibility stages or seeking financial close and have already satisfied critical aspects around the building of new hospitals. Requirements such as the acquisition of land, the possession of suitable hospital licences and a viable business case that supports investment from both a social and economic perspective, that furthermore satisfies the funds broader investment mandate.

• Conducting due diligence and managing investments by following a rigorous process which leverages the Arkein Capital Partners [A1] platform and draws on internal resources and expertise (including the integration of environmental, social and governance principles into the evaluation of investment opportunities).

• Actively managing portfolio companies, through hands-on partnerships with management teams to improve corporate, financial, operational and strategic management.

• Positioning portfolio companies for exit, by collaborating with management to build companies with strong operations and growth prospects, as well as international governance and management practices that create appealing acquisition targets for both strategic and financial investors.