The Aureos South-East Asia Fund (ASEAF) has completed a USD4m investment in the Daniel O Mercado Medical Center (DMMC), one of the Philippines’ leading medical institutions. ASEAF acquired 33% of the business, previously wholly owned by the Mercado Group.
ASEAF is managed by Aureos Capital Limited, a private equity fund management company specialising in investing in small and medium sized businesses in emerging markets. This investment marks the 17th for the Fund.
DMMC was founded in 1957, and has grown into a 100-bed medical complex, offering affordable healthcare to the Calabarzon region (Philippine growth corridor). The success of the hospital and its owners can be traced to the hospital’s adoption of a corporate culture of professionalism that is both management and doctor driven by anticipating trends and the medical needs of the community.
In 2009, DMMC won a bid to renovate and operate the Faculty Medical Arts Building at the University of the Philippines Manila Campus, the country’s leading medical school. It also operates the DMMC Institute of Health Sciences, a leading Allied Health Science school providing health and business training courses to local health professionals.
The group has 120 member physicians covering 17 practice areas and has close ties to 90 Health Maintenance Organizations (HMO), insurance and other companies. It has been accredited by the Department of Health as a tertiary level 4 hospital (the highest level attainable) and was recognised by PhilHealth as a Centre of Excellence in hospital services.
Following ASEAF’s investment, DMMC plans to expand its services through the construction of a new 3,000 square meter hospital wing. This will add 30 new beds to the complex and allow upgrades to be carried out on key medical facilities, as well as the development of a state-of-the-art nuclear imaging lab.
“DMMC is a well established hospital with a proven profitable track record, and has shown its commitment to providing quality care and education to the community," says Danny Lizares (pictured), Investment Principal in Aureos’ Philippines office. "It has demonstrated an ability to create and build a profitable healthcare business with a commercial attitude towards growth and exit, which is very much in line with the goals of our fund.
“The investment complements other healthcare investments within the wider Aureos group, and we look forward to working closely with DMMC as they work towards their goal of becoming a listed company.”
