April 20, 2017
Tallinn, Estonia April 20, 2017 Ekahi Healthcare & Lifesciences (Ekahi) plans to invest up to USD $1.8 bn through debt and equity in healthcare opportunities over the next three years. Our approach focuses on long-term value creation, providing Ekahi Health with the ability to underwrite hold periods longer than a typical private equity fund. In addition, we have the flexibility to own majority control positions, acquire minority stakes and invest in public equities or structured products.
Ekahi looks for individual acquisition opportunities that are characterised by stable mid-single-digit revenue growth and an attractive cash flow profile. They must occupy a critical and strategic role in the healthcare value chain by increasing access, improving quality or reducing costs. Ekahi Health’s long-term capital and operational expertise can support partnerships that create lasting shareholder value.
Healthcare is undergoing a paradigm shift — Ekahi is focused on investments that are aligned with the strongest growth currents in the global healthcare industry: a rapidly ageing population, a growing middle class in emerging markets, innovation in healthcare delivery, technology and data analytics, and the rapid advance of biopharmaceutical and genomic science.
Focus on growth sectors with healthcare — Ekahi Health is currently focusing onPharmaceutical Services Sector: Contract research organisations and contract development and manufacturing organisations are large and growing markets – USD $31 bn and USD $36 bn respectively – benefitting from big pharma’s drive to expand research, development and manufacturing by outsourcing. Fragmentation in these markets, with top-tier players controlling only a quarter of revenues, has created attractive acquisition opportunities.
Life Science Tools: The life science sector benefits from diversified end markets across academic and government institutions, applied markets, biopharma, hospitals and clinics. While innovation is largely incremental in this sector, fragmentation provides considerable opportunity for consolidation amid pressure for better product pricing.
Hospitals & Healthcare Distribution: Hospitals and Distributors are a large and growing component of the healthcare industry, offering access to global healthcare services and products through more efficient network capabilities. The low capital requirements of distribution lead to high free cash flow generation, while significant savings opportunities could be achieved through consolidating networks. And the high capex of hospitals creates high barriers to entry.
Ekahi.Group works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, engineering, logistics and finance.Ekahi’smission is to invest in companies that combine an outstanding business model with strong competitive advantages.Ekahi stays invested for the long – term, preferably for the next generation.Ekahi’s investment philosophy is characterized by consistent application of the principles of value investing, which solid, stable businesses, Internal Compounding by organic or acquired growth, managementwith strong business sense and an owner-mentality and margin of safety. Each acquisition further fuels innovation and application across our industrial sectors. With people, services, technology and scale, Ekahi is able to deliver better outcomes for customers by speaking the language of industry.Ekahi.Group is the trading and registered name of Envesecure, a registered Fund and Family Office.
For more information visit www.ekahi.group
Caution Concerning Forward-Looking Statements:
This document includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.