[Kenya] Proparco and Ascent Rift Valley Fund II acquires major stake in Diani Beach Hospital
Proparco and Ascent Rift Valley Fund II, an East African private equity fund have announced the acquisition of a majority equity stake in Diani Beach Hospital Limited (“DBH”), a healthcare provider on Kenya’s South Coast.
On Proparco’s side, the investment is made under the FISEA+ initiative, a high-impact investment facility dedicated to supporting MSMEs in Africa owned by Proparco’s parent company, the French Development Agency (“AFD”).
Founded as a 10-bed private hospital in 1997, Diani Beach Hospital is today the largest private healthcare facility in Kwale County, with more than 120 beds across four sites. DBH has been a pioneer in offering quality and affordable medical services across the entire South Coast of Kenya. It is the reference private hospital locally, working with key local and international insurers, parastatals and corporations.
Together with DBH’s founder, Dr Kawaljeet Singh Rekhi, Ascent Capital and Proparco will continue to grow and strengthen the business – thereby expanding healthcare provision and improving quality of care in an underserved part of Kenya. This will benefit an estimated 600,000 inpatients and outpatients over the next five years. The investment will cement DBH’s role as a key local employer, with women, in particular, constituting c. 50% of employment and leadership roles. As such, DBH qualifies for the 2X Challenge, a global gender finance initiative.
Dr Kawaljeet Singh Rekhi, the founder and CEO of Diani Beach Hospital commented “the investment by FISEA+ and Ascent into Diani Beach Hospital marks a significant milestone in our journey and paves the way for our next chapter of growth and success. We are incredibly excited to welcome members of both Proparco and Ascent onto our board of directors, to leverage their unequivocal local and international expertise in the healthcare space in order to enhance and accelerate our ambitious growth strategy over the short- and medium-term. We look forward to strengthening the Diani Beach Hospital brand as we continue to expand, affording access to world-class healthcare to an ever-increasing number of people to whom we look to serve.”
Lucas Kranck, Managing Partner at Ascent Capital Advisory Services LLP commented “we are very excited about the fund’s investment into Diani Beach Hospital. The work done by Dr Rekhi and his team to create and grow the leading hospital on the South Coast of Kenya has been exceptional and we are very proud to be part of the journey going forward. We look forward to working with Dr Rekhi and the hospital management and staff to expand regionally and offer additional services to the hospital’s clients.”
Damien Braud, Head of Equity for Africa and the Middle East at Proparco commented “we are thrilled about the investment by FISEA+ in Diani Beach Hospital. DBH is the essential provider of healthcare for the entire coastal area south of Mombasa. Dr Rekhi and his team have built a highly successful business, attracting competent staff and clinicians thanks to quality infrastructure, operations and management. The area where DBH operates is still largely underserved and we are excited about the growth potential that this represents. Healthcare is a core sector for Proparco and the investment also meets FISEA+’s mandate of supporting SMEs, particularly in rural areas.”