London – TLG Capital announced on Wednesday, November 30, that it has invested growth capital in Snapper Hill Clinic (SHC), through its Credit Opportunities Fund, backed by a guarantee from the Medical Credit Fund (MCF). SHC is the largest private out-patient facility in Liberia’s capital Monrovia, serving around 15,000 patients a year. While the dollar-amount of the investment remains undisclosed, TLG says it will enable SHC to deploy two 2 additional clinics and increase patient volumes to over 50,000 patients a year. TLG has been an investor in SHC since 2010.
SHC has been in operation since 1983 and cemented its strong reputation when it became the only clinical service provider in Monrovia during the height of the civil war (1989 – 1991). It reprised its role as a resilient healthcare provider when it became one of the few outpatient facilities providing services during the Ebola crises in 2014-16. Liberia was worst hit by Ebola amongst the West African countries with close to 15,000 registered cases and a mortality rate of 55%.
MCF is a social impact fund that enables companies in the healthcare sector in sub-Saharan Africa to access affordable finance in order to improve healthcare quality. Its first debt fund for healthcare SMEs was initiated in 2009 by the PharmAccess Group, with support from international financers like OPIC, the Calvert Foundation and the Dutch government. The loans are connected to technical support on quality improvement using the SafeCare standards and business planning.
“This transaction represents a major step forward in our relationship with TLG who have been our partners since 2010,” said Varsay Sirleaf, CEO of SHC. “TLG’s investment will not only support our vision of becoming West Africa’s preferred service provider but will also buttress our participation in building a resilient healthcare system in Liberia post-Ebola. We are equally excited about our new relationship with the PharmAccess family (MCF and SafeCare). Through this partnership, SHC will be introducing higher standards of service into the Liberian market and ensuring that patients receive safe, timely and effective healthcare.”
Saad Sheikh, who led the deal for TLG said: “We are delighted to be deepening healthcare delivery in Liberia. With the expansion capital from TLG, SHC is able to offer best in class healthcare services across 3 locations in Monrovia – greatly increasing the supply of healthcare services to lower and middle income households. SHC aspires to be the market leader not only in Liberia, but also the region and TLG is excited to be contributing to that success. We have found a great partner in MCF to improve health delivery across sub Saharan Africa, with its credit enhancement and technical assistance programme, and we look forward to achieving more together in the coming years.”
Bart Schaap, Finance Director of Medical Credit Fund commented: “In investment climates like that of Liberia, it is especially difficult for the health sector to access capital – an even more harsh reality in a country where the healthcare needs are so pressing. Medical Credit Fund lowers the investment risk so that players like TLG Capital are more inclined to inject capital into medical facilities like Snapper Hill, a clinic that has played such a crucial role in the Liberian healthcare market already. We look forward to building these new partnerships and helping to improve quality of care for a growing number of patients in Liberia.”