PORTFOLIO CASE STUDY: Evercare
CASE STUDY: Evercare
Evercare is an integrated healthcare delivery platform operating in growth markets across Africa and South Asia, including India, Pakistan, Bangladesh, Kenya and Nigeria.
HEALTHCARE: Providing affordable, high-quality healthcare across Africa and South Asia
Approximately 80% of deaths due to noncommunicable diseases occur in low- or middle-income countries. However, systemic underinvestment in healthcare infrastructure has resulted in less than one hospital bed per 1,000 people in many low-income countries, compared to a global average of 2.9 beds per 1,000 people. There is an urgent need to expand the delivery of affordable, high-quality healthcare across emerging markets.
An existing healthcare platform with a critical mission
In June 2019, TPG Growth, in conjunction with The Rise Fund (Rise), took over management of the Abraaj Growth Markets Health Fund (AGHF), forming a new fund called The Evercare Health Fund (Evercare). Together with existing investors, which include the Bill & Melinda Gates Foundation, and leading development finance institutions such as the Overseas Private Investment Corporation (OPIC), and the International Finance Corporation (IFC), TPG and Rise will continue the $1 billion fund’s critical mission of providing affordable, high-quality healthcare across Africa and South Asia.
Evercare helps communities thrive by improving access to clinics and hospitals for the underserved. It does this by leveraging technology and integration to increase the quality of care. Through its portfolio of 29 hospitals, 18 clinics and 45 diagnostics centers, Evercare is building a foundation of continuous improvement around standardized care to improve clinical outcomes and patient safety. In 2019, Evercare provided approximately 2.7 million patient episodes of care across its facilities.
Expanding access to healthcare to improve health outcomes for people
In many growth markets, existing health systems are unable to provide affordable care on a large enough scale to materially improve population health outcomes. This ongoing lack of healthcare access has led to poor outcomes for many: Maternal and infant mortality rates in the countries where Evercare operates can reach as high as 800 and 7,000 deaths per 100,000 live births, respectively. Life expectancy in these countries can also be up to 20 years shorter than the global average age of 73 years.
At the same time, rising income, urbanization and changing lifestyles are driving increased demand for quality healthcare in markets that have historically been underserved. This disconnect represents a compelling opportunity to invest in healthcare businesses that will ultimately deliver strong returns for investors alongside better outcomes for patients—a scenario that directly aligns with The Rise Fund’s vision of delivering positive impact and financial returns in parallel.
HOSPITAL BEDS PER 1,000 PEOPLE
Nigeria – 0.4
India – 0.5
Pakistan – 0.6
Bangladesh – 0.8
Kenya – 1.3
Global Average – 2.9
High Income Country Average – 4.1
Low Income Country Average – 1.2
Leveraging our expertise to drive impact
Our assumption of the management of AGHF allows us to leverage the healthcare investing experience of TPG’s global team and the impact investing expertise of Rise to help Evercare achieve its mission of providing access to healthcare in communities that desperately need it.
TPG Growth and Rise are focused on driving value across the Evercare portfolio and have made strong progress across many initiatives. We have brought on new members across the leadership team, including a new CEO (Massimiliano Colella), CFO (Vaughn Firman), and CTO (Sumit Puri).
Massimiliano (Max) Colella, appointed as the new Evercare CEO, has 20+ years of strategic leadership across healthcare devices and consumables and has a track record of leadership across Evercare’s core markets at organizations including Johnson & Johnson and Smith & Nephew. Vaughn Firman, appointed as the new Evercare CFO, brings over 15 years of healthcare experience across Africa with expertise from time spent at a top-three Sub-Saharan Africa hospital group and Netcare. Sumit Puri, appointed as CTO, has over 15 years of IT leadership across healthcare and financial services and has previously managed IT agendas at organizations including Max Healthcare, Prudential, GE, and PwC.
We have also appointed Ritu Kumar as Evercare’s ESG Officer to accelerate the platform’s ESG agenda further. Ritu has over 20 years of experience in ESG, sustainable development, investment, and value creation, and is a member of the TPG's ESG team.
Each member brings to Evercare years of healthcare expertise and leadership and will work to continue to scale our global reach.
In March 2020, we closed our inaugural investment since taking over Evercare: an investment in Apollo Hospitals, the only JCI accredited hospital in the country, which will increase Evercare’s capacity by 725 hospital beds and expand its reach into Bangladesh.
By the Numbers:
2.7 million+ – Patients episodes of care (inpatient and outpatient) across Evercare’s healthcare facilities in 2019
3,150 – Patient beds across the Evercare portfolio
72,000 – Inpatients treated by Evercare since Rise became manager
1.3 million – Outpatient consultations provided by Evercare since Rise became manager, a 7% increase since the same period in 2018
29 – Hospitals (+ two under construction)