Aureos Capital, the SME-focused emerging markets investor that spun out from state-backed private equity firm CDC, has invested $2.5m in a Kenyan hospital and health insurance company, the Avenue Group, a provider of affordable healthcare cover and medical services.
The Avenue Group is the only healthcare provider in Kenya to combine healthcare cover with the delivery of affordable medical services at both outpatient and inpatient levels. Its corporate medical schemes are designed to be accessible to businesses with as few as ten employees and around 70 per cent of the staff covered are in non-managerial roles.
Through Aureos’ investments, the company will expand into other key regions within Kenya, constructing a further two clinics in smaller towns in Kenya, and expanding existing inpatient facilities in Kisumu and Mombasa.
The funding will also ensure that the Avenue Group can continue its non-profit activities which include free medical camps across Kenya and public health screening days at Avenue clinics.
Shakir Merali, a partner at Aureos Africa Healthcare Managers in Kenya, said, “Avenue has developed strong links with the Kenyan business community that are helping to bring health cover to a wider range of workers, even those who work in smaller firms.
“We are looking forward to helping the Group to pursue its plans for growth and to extend its successful model and high quality care, initially within Kenya, and eventually in neighbouring East African countries,” he added.
The Aureos Africa Health Fund was established two years ago with the International Finance Corporation, the African Development Bank, DEG, and the Bill & Melinda Gates Foundation as cornerstone investors. Subsequent investors include the Elma Foundation along with private sector investors such as family offices and a major European retail bank. Committed capital in the fund now totals $75.4m.
In July Aureos Africa Health Fund also invested $4.5m in C&J Medicare, a health facility in Accra, Ghana. The firm has set aside $593m for projects in Africa, representing 46 per cent of global funds under management.
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