Arcapita Group Holdings, along with the Kingdom’s sovereign wealth fund Bahrain Mumtalakat Holding Company, are exiting their joint-position in the healthcare sector after exceeding target returns.
Both entities have already sold off their stakes in NAS Neuron Health Services LLC, a provider of outsourced medical claims processing company.
In an announcement, Arcapita Group, which prides itself as one of the largest global alternative investment firms operating in the GCC, confirmed that they exceeded target returns over a holding period spanning three years.
For the uninitiated, Arcapita and Mumtalakat entered an agreement in 2017 to jointly acquire an equity stake in NAS United Healthcare Services. Throughout the tenure of the investment, the consortium forged by the two entities supported various organic and inorganic growth initiatives undertaken by NAS.
These include business combination with Neuron LLC, another major UAE-based third-party administrator (TPA), as well as several strategic measures to reduce operational expanse and support customer growth, among others.
“We are pleased to have achieved this exit in the current economic environment,” Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, said.
He added, “The UAE and GCC’s private health insurance market has been undergoing a major transformation over the past few years as governments have sought to shift healthcare expenditures from the public to the private sector. NAS Neuron has been a beneficiary of this trend and the company has successfully navigated the TPA market by rebalancing its portfolio mix, maintaining a strong technology backbone, and improving operating efficiency.”