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IG4 Capital Acquires Two Hospitals for R$200m

30 May 2020

IG4 Capital has acquired two Brazilian hospitals through its recently formed OPY Health unit for R$200m. IG4 plans on expanding the number of beds in both hospitals. 

(Press Release) Opy Health, the health care investment arm of IG4 Capital, made its second acquisition in the last week. The company acquired 100% of the concessionaire responsible for the PPP contract to manage the Delphina Rinaldi Abdel Aziz (“Delphina”) Hospital, in Manaus (AM). With the closing of this transaction, Opy Health becomes the controlling shareholder of the Zona Norte concessionaire and will be responsible for all of the hospital’s administrative and operational support areas such as cleaning, food, reception, security, and internal logistics, among others. The objective of the investment is to offer excellent service and humanized care to hospital patients so that doctors and nursing staff can always count on an organized, clean and safe environment, in addition to fully equipped surgery rooms and materials. Furthermore, the hospital is equipped with advanced technology that allows it to be 100% paperless. The hospital currently has 370 beds and 11 surgery rooms as well as a diagnostic imaging center.

Among the improvements already implemented by Opy Health for the Delphina Aziz Hospital is to support the Health Secretary of the Government of the State of Amazonas by expanding the capacity of Delphina, as Delphina has become the reference hospital for the treatment of patients with COVID-19. The concessionaire was able to expand the hospital’s ICU bed capacity in record time, a feat which proved essential in preventing the collapse of the public health system in the state of Amazonas.

The hospital operates exclusively through SUS and the partnership has a 20-year term (until 2033), which can be extended for another 15 years.

Market and industry segment
According to Otavio Silveira, CEO of Opy Health, the Brazilian health care market is a BRL 20 billion per year market, and as the world population ages, the need for supply, accessibility and efficiency in the health sector will continue to increase. This scenario encourages new formats of partnerships and synergies between those involved in the chain, including public authorities, medical staff, hospital management, health care plan providers, laboratories, producers, and pharmaceutical retail. In this context, Opy Health has played an important role in the industry through the operation of public hospitals under PPP regimes. Public institutions currently represent over 60% of the health care market in Brazil. “This is a segment with a huge gap in terms of management efficiency and which has yet to receive the attention of investment funds”, explains the CEO of OPY Health.

“Opy Health offers the health care sector all of its experience in providing public services via concession, structuring and restructuring businesses, corporate strategy and regulatory management, allowing the medical team to concentrate all their efforts on providing better health care service to their patients”, concludes Silveira.

About Opy Health
Opy Health is a platform for the management of infrastructure assets and services in the Brazilian health care sector and is the health care investment arm of IG4 Capital. The company was created with the objective of managing hospital infrastructure assets, focusing on the provision of non-medical services (maintenance, logistics, cleaning, security, reception, laundry, and digitalization, among others), technology and back office support for hospitals.

About IG4 Capital
IG4 Capital is a private equity firm specializing in impact investments and special opportunities in emerging markets, with a focus on ESG and value creation strategies via financial and operational restructurings. With offices in São Paulo, Santiago and London, IG4 Capital currently has around US$500 million in assets under management. Opy Health is the first investment realized by IG4 Capital Private Equity Fund II.