Private Equity | Abraaj Plans $400 Million African Health-Care Pool

LAGOS, Nigeria, Capital Markets in Africa — Emerging markets investor The Abraaj Group is trying to raise $400 million for a fund to invest in African health-care businesses, according to documents from an investor.

Abraaj Growth Markets Health Fund Africa will invest alongside the Abraaj Growth Markets Health Fund, according to a report from the African Development Bank. The Dubai-based firm is trying to gather $1 billion for the latter and has closed on $500 million so far, according to a Nov. 23 regulatory filing.

The larger fund will invest in building “health ecosystems” in Sub-Saharan Africa and South Asia, according to the report. Investors in that fund include the Overseas Private Investment Corp. and the World Bank Group’s International Finance Corp., according to data compiled by Bloomberg.

The Africa-focused fund will invest in businesses that address health issues caused by rapid urbanization and population growth, according to the development bank’s documents. Those will include multi-specialty hospitals, clinics, diagnostic networks and pharmaceutical products manufacturing. The bank committed $25 million to the African fund, according to a statement. Abraaj funds have made 18 African health investments and exited two, according to the development bank’s report.

In November, Abraaj North Africa Fund II bought a majority share in Centre de Traitement Al Kindy, Casablanca’s largest private oncology clinic, and Clinique  Specialisee Menara, an oncology and imaging diagnostics center in Marrakech, according to a statement. It also invested in North Africa Hospital Holdings Group, according to a statement.

Abraaj has about $9.5 billion in assets under management. Mitali Atal, a spokesman for the firm, declined to comment, citing regulatory restrictions.