Gulf Capital invests $100m in fertility clinic acquisition

Abu Dhabi: Alternative asset managing company Gulf Capital on Tuesday announced a $100 million (Dh367 million) acquisition of fertility service provider IVI-RMA Middle East.

The acquisition, which represents the group’s single largest investment deal, will see Gulf Capital having a 100 per cent stake in the operation, as the company aims to increase the number of fertility clinics three-fold and to expand operations regionally and to Asia and Europe over the next three years.

“We are thrilled to back the strongest management and medical team within the IVF [in vitro fertilisation] sector regionally. This transaction exemplifies Gulf Capital’s tried and tested strategy of acquiring controlling stakes in market leading companies in high growth sectors,” said Dr Karim Al Solh, chief executive officer of Gulf Capital.

“IVI-RMA Middle East is the fastest growing IVF service provider in the GCC, and we are excited to be collaborating with its strong management team to take this platform to the next level,” he added.

“The investment is Gulf Capital’s largest equity investment to date and is the first corporate carve out in our firm’s history,” he said.

Al Solh said the funds for the investment came from its third $750 million private equity fund, with the fund having over $200 million remaining for more investments.

Dr Human Fatemi, medical director for IVI-RMA Middle East, who will continue to remain in his management role, said the IVF market in the GCC was an expanding one with more of the population looking for fertility treatments.

“The uptake of assisted reproduction methods to conceive has increased exponentially in the GCC, especially among the urban population.

“Infertility in the Middle East has been on the rise due to ever evolving lifestyle patterns and other disorders… While the IVF market in the GCC is growing rapidly, there is a clear need to address issues like standardised clinical protocols, structured training, genetic laboratories and ethical practices,” he added.

“Our partnership with Gulf Capital shall help us offer our services to an even broader segment of the population,” he said.