Shefa Healthcare Fund signs landmark USD 37.5 million deal with Saudi healthcare major, Saudi Health Investment Company

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The Shefa Healthcare Fund, Injazat Capital’s USD 100 million Shari’a compliant venture fund, has signed a landmark agreement with Saudi Health Investment Company (SHIC) under which SHIC will invest USD 37.5 million in private equity capital into the Fund and gain three seats on its board of directors. The agreement was signed between Hussein Rifai, Managing Director of Injazat Capital, the Middle East’s leading Islamic investment bank and Dr. Mohammed Amin, CEO of SHIC.

Shefa Healthcare Fund has also entered into a tie-up with a prominent Saudi group, Al Mashafi Group of Hospitals, gaining a majority stake in two of the group’s hospitals in exchange for stock that it hands to Al Mashafi Group. This agreement was signed between Rifai and Fayyad Dandashi, CEO of Al Mashafi Group. Both the deals were announced at a press conference held in Jeddah recently.

Welcoming the agreements, Rifai said: “This agreement speaks for the faith investors have in our professional expertise and our ability to guarantee high Returns on Investment. Shefa Healthcare Fund’s tie-up with Al Mashafi Group will give a fresh impetus to strengthening and upgrading of the region’s healthcare infrastructure and services. Similarly, the Saudi Health Investment Company’s equity contribution to Shefa Healthcare Fund will help us extend our reach across the region’s emerging healthcare sector by increasing the quantum of capital investment in potentially-profitable ventures.”

Dr. Amin said: “We are happy to enter into this agreement, as it allows us to benefit from Injazat Capital’s far-reaching investment strategies and expert services. Our presence on the Injazat board of directors will allow us to play a deciding role in the venture capital fund’s operations, and complements our initiatives to boost investments towards the growth of the regional healthcare sector.”

Fayyad Dandashi, CEO of Al Mashafi National Group of Hospitals said: “We are pleased to sign this important deal with Shefa Healthcare Fund as it will benefit the people of Saudi Arabia and the Middle East region at large, by providing advanced medical facilities of a high international standard.”

Widening its regional operations, Injazat’s Shefa Fund has recently signed Memoranda of Understanding (MoU) with five hospitals in Lebanon, Egypt and Jordan, laying the grounds for further serious negotiations with the hospitals concerned. The Shefa Healthcare Fund is managed by Injazat Capital, which is one of the region’s leading and experienced private investment and advisory firms, operating in compliance with Shari'a principles and specialising in management buyouts, private equity, venture capital and leveraged debt.

Injazat Capital is a leading Private Equity Investment and Corporate Advisory firm in the MENA region. Since its inception, Injazat has played an active role in the development of the MENA region by investing in and advising promising companies. Injazat operates in compliance with Shari’a principles and were the first to offer an Islamic Venture Capital Fund worldwide. Injazat Capital has established itself as one of the most active participants and successful firms in the industry throughout the MENA region.

© 2006 Al Bawaba (www.albawaba.com)