Target Information

Baraya Extended Care, launched in 2023, is a leading provider of long-term care and rehabilitation services in Saudi Arabia. Having recently secured a Series B funding round that brought total capital raised to USD 124 million, the company aims to address significant gaps in long-term care within the Kingdom. Baraya operates two outpatient rehabilitation clinics in Riyadh and Jeddah, capable of providing over 9,000 patient sessions monthly, and is set to open its first 216-bed long-term care hospital by early 2026.

This recent funding round, led by TVM Capital Healthcare, comes at a critical time as Saudi Arabia grapples with an aging population and a growing number of chronic health conditions. The capital raised will facilitate Baraya's expansion of high-quality healthcare facilities and outpatient services, contributing to improved post-acute care that aligns with the Kingdom's Vision 2030 healthcare goals.

Industry Overview

The healthcare industry in Saudi Arabia is undergoing a transformative phase, driven by the government’s Vision 2030 initiative, aimed at optimizing healthcare services across the Kingdom. As the population ages, the demand for comprehensive long-term care and specialized rehabilitation services is surging. According to the Saudi Ministry of Health, a staggering 14% of acute care beds in public hospitals are occupied by long-stay patients, with particularly high percentages in urban areas like Jeddah (19%) and Riyadh (17%).

This rapid growth in demand for extended care services highlights the necessity for innovative healthcare solutions. As the Kingdom navigates these demographic shifts, investments in the sector are becoming increasingly critical. The focus is on integrating international standards within local healthcare frameworks to ensure quality and accessibility for all patients.

Additionally, the implementation of new regulatory frameworks is essential to facilitate growth in the extended care segment. Investors and healthcare providers must work closely with regulatory bodies to develop sustainable and scalable models that can be replicated in other regions facing similar challenges.

The rise of chronic diseases, coupled with an aging populace, indicates that long-term care services will be vital in the coming years. The government's emphasis on Health Sector Transformation will drive the need for providers like Baraya to expand their services and innovate in care delivery.

Rationale Behind the Deal

The rationale for this investment in Baraya Extended Care stems from the pressing need for enhanced long-term care facilities in Saudi Arabia. The increasing demand for specialized post-acute care services, as outlined by the Kingdom's Vision 2030 framework, creates an urgent market opportunity for Baraya. This funding round aims to bolster the development of crucial inpatient and outpatient care services that the country requires.

By addressing the significant number of long-term care patients occupying acute care beds, this investment aligns with national healthcare priorities while potentially improving patient outcomes. With Baraya poised to create a scalable model for extended care, it stands to make a substantial impact on the healthcare landscape in Saudi Arabia.

Information About the Investor

TVM Capital Healthcare is a prominent player in the healthcare private equity sector with a strong presence in the Middle East. Established in 2010, the firm has a proven track record of building, scaling, and exiting high-quality healthcare businesses, making it uniquely qualified to support Baraya's growth ambitions. The investment in Baraya is part of TVM's broader strategy to advance healthcare outcomes in the region.

In addition to Baraya, TVM Capital Healthcare has successfully invested in and developed other important healthcare projects, such as ProVita International Medical Center and Cambridge Medical & Rehabilitation Center. This experience and expertise allow TVM to implement international best practices and create sustainable healthcare solutions in the Kingdom.

View of Dealert

Dealert views this investment in Baraya Extended Care as a strategically sound decision. The urgency for enhanced long-term care services in Saudi Arabia, coupled with the Kingdom’s demographic trends, positions Baraya well for success. The significant oversubscription of the funding round reflects a strong market belief in Baraya's potential to meet these challenges and enhance healthcare delivery.

Moreover, TVM Capital Healthcare’s expertise and historical success in the healthcare sector lend credibility to Baraya’s operational model. The firm’s experience in establishing regulatory frameworks and specialized operations will provide Baraya with a competitive edge in the market.

Furthermore, as Saudi Arabia continues to implement Vision 2030, the alignment of Baraya’s services with government priorities further underscores the viability of this investment. This could not only improve care delivery within the Kingdom but also serve as a prospective model for other regions facing similar healthcare challenges.

In conclusion, the future appears promising for Baraya Extended Care, as the investment supports their ambitious expansion plans while addressing urgent healthcare needs in Saudi Arabia. This deal may very well catalyze transformative changes within the extended care landscape and position Baraya as a leader in the sector.

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