Singapore PE Kendall Court Invests USD 55 Million in Indonesia's Mandaya Medical

VCBeat (WeChat: vcbeat) has learned that on October 19, 2018, local time, Kendall Court, a private equity firm headquartered in Singapore, announced a $55 million investment in Indonesian healthcare company Mandaya Medical International Pte Ltd (MMI, hereinafter referred to as Mandaya), a subsidiary of the local medical group Selaras.

It is reported that the investment was completed through Mandaya’s preferred shares. The company operates a 218-bed hospital in Karawang.

According to a statement released by Kendall Court last Friday, the funds will be used to build a 420-bed hospital in Jakarta, which is expected to open in 2019.

Previously, Indonesia decided to open its general hospitals to foreign investors to support the country’s ambition to achieve universal health coverage by 2019. In 2017, foreign investors were permitted to acquire up to 67% of shares in the country’s general hospitals, while ASEAN investors were allowed to acquire up to 70%.

In a previously issued statement, Kendall Court announced that, as part of its strategic expansion plan, Mandaya will build two additional hospitals over the next five years. During this period, it may also invest nearly $150 million in projects including Mandaya Royal Hospital Puri (New Jakarta Hospital). Under this plan, the two new hospitals will be located in major Indonesian cities, aiming to leverage the country’s strong fundamental economic growth to address the current imbalance between supply and demand in Indonesia’s healthcare sector.

Indonesia is one of the countries with the lowest hospital bed-to-population ratio in the world, facing a shortfall of more than 500,000 beds during its mid-stage development. With the booming middle class and rising income levels, Indonesia’s healthcare industry still holds vast potential for growth.

Chris Chia, Managing Partner at Kendall Court, stated that the firm has been making industrial investments in Indonesia for many years and continues to do so. He said, “We remain optimistic about Indonesia’s overall market outlook, and we will continue to seek out attractive growth areas for investment here.”

Kendall Court is a private equity investment firm headquartered in Singapore. The company currently manages equity-related mezzanine investments in Southeast Asia, with over USD 600 million in assets deployed and managed in the region. Backed by multiple institutional and high-net-worth investors, Kendall Court has invested in sectors including natural resources, healthcare, and telecommunications over the past decade.