Assessing investment opportunities in the GCC healthcare and education sectors

The situation

A UAE investment company conducting private equity investments in the GCC wanted an assessment of the opportunities in the healthcare and education sectors.

The client tapped Strategy& to support it in determining attractive focus areas and sector-specific value creation approaches, as well as integrating the findings into an investment story and feasibility document.

How we helped

After identifying the subsectors and geographies in which to focus, the Strategy& team conducted an in-depth market assessment of each. They looked at the institutional and regulatory frameworks, including the key bodies, level of private company involvement, and maturity of the frameworks; examined key demand drivers, demand forecast, and current demand by region; surveyed the competition — key players, geographic distribution, share of market; identified high-potential investment opportunities and way-to-play; and developed value creation approaches for both stand-alone and portfolio-wide investment. Based on the assessment, the team refined the investment story; conducted sector workshops to align focus areas, value creation approach, and investor story; and developed five-year financial forecasts.

Finally, they integrated market opportunity, investment strategy, investment approach, and the forecasts into a feasibility study.

Results

The senior management team approved the capital deployment approach, five-year financials, and feasibility study, and successfully completed two transactions to date in the healthcare and education sectors.