TLDR:
– Middle East investors are diversifying their portfolios by backing Southeast Asia-focused PE funds
– TVM Capital Healthcare has closed its second Middle East fund, drawing US$250 million from institutional investors
Middle Eastern institutional investors are increasingly turning to the growing economies of Southeast Asia to diversify their portfolios amidst escalating tensions between China and the West. TVM Capital Healthcare, a Dubai and Singapore-based private equity firm, has recently closed its second Middle East fund with US$250 million in investments. The fund saw participation from institutional investors from Gulf countries and Europe, led by Jada Fund of Funds and Saudi Venture Capital.
With established ties between Middle Eastern countries and China, recent political developments between China and the United States have led Middle Eastern investors to seek neutrality and deepen ties with Southeast Asian nations. TVM Capital Healthcare has already invested in three targets through their new fund, including Alina Vision, a Vietnam-based eye care services provider.
In addition to geographical diversification, Middle Eastern limited partners (LPs) are exploring alternative asset classes such as private equity. TVM Capital Healthcare, active in the Middle East since 2010, focuses on healthcare manufacturing and services, investing in expansion and growth stage companies with substantial growth opportunities.
The company plans to allocate all capital raised in the Afiyah fund to six to eight targets by the end of the year and believes that Asia will become a third pillar of international diversification for Middle Eastern investment in the next decade.
