Egypt: CDC takes US$100m stake in AMG

CDC Group, the UK’s development finance institution and impact investor, has made a US$100m minority equity investment in Alfa Medical Group (AMG), one of the largest healthcare providers in Egypt.

It made the investment alongside healthcare investor Africa Platform Capital, the family office of Simon Rowlands, a leading sector expert with a strong track record in healthcare and former co-founder of the global private equity firm, Cinven, where he led the healthcare team.

AMG consists of more than 140 medical labs and six radiology centres, as well as a 170-bed hospital, with two further hospitals and the Alfa Medical City under construction.

The group’s history goes back to the El-Safa hospital founded in 1977 by the late Samir Talaat, followed by Alfa Scan and Alfa Laboratories established over 25 years ago.

Finds raised enable AMG to improve its medical health services outcomes, increase public access to medical care and broaden its hospital footprint which will include the new Alfa Medical City. The investment will also support the expansion of the AMG laboratory business particularly into underserved regions across Egypt, as well as the growth of Alfa Scan radiology centres.

In addition, the transaction will finance the establishment of the Alfa Academy, a training academy for AMG employees and third-party healthcare staff. The Academy will provide training to healthcare professionals, developing permanent high-quality talents across the sector and improving patient care.

Compass Capital acted as the sole financial advisor on the transaction representing AMG Group with Al Kamel Law Office and Serry Law Office acting as legal counsel to AMG.