Abraaj exits Philippines hospital DMMC

Established in 1957, DMMC is a 100-bed hospital located in Calabarzon region south of Manila, which employs around 500 doctors and staff. The original investment in the company was made in 2011 by Aureos Southeast Asia Fund I (ASAF I), a $91 million vehicle run by Aureos Capital until its acquisition by Abraaj in February last year. Aureos had acquired a 33% stake in DMMC for $4 million.

According to a release, DMMC used the investment to build its Mercado Ambulatory and Surgical Center (MASCI), a state-of-the-art diagnostic and outpatient facility.

During the holding period period the business is said to have expanded its market reach, service offering and patient numbers, with its outpatient numbers increasing 19.5% last year. MASCI's outpatient numbers grew by 41.1% with surgical procedures growing 99.1% year-on-year.

"This was an attractive investment opportunity for us to make in a growing sector where demand for beds far outweighed supply, with the potential to support a highly experienced management team and scale a well-established, multi-credited hospital," said Danny Lizares, managing director and Philippines country head for Abraaj.

"We succeeded in our aim to further facilitate the provision of quality healthcare for the mass market, offering state-of-the-art medical services at competitive prices."

ASAF I, a 2004 vintage fund which reached final close after two years on the market, is now in its exit phase. Other recent exits include: Thailand-based data center provider Unitrio Technology which was exited to Japan's NTT Facilities in April; restaurant chain Hot Pot, which floated on the Stock Exchange of Thailand last December, and Bangkok's Vejthani Hospital, which was sold to regional healthcare chain KPJ Healthcare in December generating a 3x money multiple.

Abraaj currently has two Aureos investments remaining in the Philippines - Pancake House, a casual dining chain backed by ASAF I in 2005 and HBC, a leading retailer of beauty and personal care products backed by Aureos South Asia Fund II, a $200 million vehicle launched in 2010, back in 2011. 

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• Topics
• Southeast Asia
• Exits
• Healthcare
• Southeast Asia
• Philippines
• healthcare
• Aureos Advisers (Aureos Capital)
• Exit
• The Abraaj Group