Currently, RH Bophelo is seeking an initial injection of R500 million, with expected deployment over the first 1-to-2 years and has a further pipeline of over R2 billion. Our entity is value-focused and will deliver traditional alternative asset-class returns whilst providing day-to-day liquidity, lower management costs, and greater transparency.
We will also provide investors with an alternative asset-class returns, through a diverse portfolio of other debt/equity securities in operating companies, that participate in a broad array of healthcare specific sectors. Proceeds from capital raises and profits from the realisation of RH Bophelo’s investments will be re-invested, and therefore resulting in capital appreciation for investors.
Majority black owned and managed
- Upon acquisition of its first asset(s), RHB will operate like an investment / private equity fund with very limited direct employees and as a result has entered into a management agreement with the Manco.
- The Manco’s team consists of individuals who are uniquely qualified to deliver exceptional performance.
- The management and corporate structure has been set up in this way in order to align RHB and the Manco to the private equity provisions of the BBBEE Act, and therefore the structure:
– Leverages the ability of RHB to raise capital from the listed market whilst maintaining black control.
– Facilitates government’s initiative to issue licenses to BEE parties (major competitive advantage).
– BEE status creates a significant pipeline.
– Acts as an enabler and plays a critical role in unlocking BEE in the secondary market.
RH Bophelo’s investors will benefit from the following:
- Long term partners focused on building sustainable long-term growth and value for investors.
- Experienced management team with extensive healthcare and investment experience.
- Strong relationships and networks with Departments of Health in all of South Africa’s provinces.
- Aligned incentive structure as management have “skin in the game” (directors will hold 5% on Listing).
- BEE vehicle with access to an initial R1.0 billion pipeline.
- Powerful BEE credentials are crucial in obtaining licenses.
- Liquid vehicle that provides investors access to a portfolio of highly sought after unlisted healthcare assets.
- Incorporating BEE and environmental, social and governance principles thereby assisting in unlocking South Africa’s economic potential.
- Direct real asset exposure to the defensive healthcare sector with reliable cash flow.
- Exposure to the ever-growing private healthcare sector.
- Comparable companies are expensive and trading at very high multiples.
- Opportunity partner with licence holders who struggle to raise the equity required for further asset / project funding.
- Access to a R250m facility from Old Mutual Specialised Finance on Listing.
- Receive interim cash flows via dividend income and benefit from capital appreciation.
- Strong financial returns and duration risk mitigation over the long-term.
- Benefits of diversification, healthcare has a low correlation with other asset classes and has an inelastic demand.
The proceeds of the Private Placement will be used by the Company to fund the acquisition of Viable Assets.
RH Bophelo’s strategy is to create a premier healthcare investment group by leveraging off its BEE credentials and the Management Company’s market position as the go-to providers of equity for healthcare projects. The strategy will be implemented in a three pronged approach as follows:
Consolidation of already operating assets
The Company will either individually purchase equity, or co-invest in healthcare assets that are already operating and have cash flows. The idea of a consolidated group appeals to independent groups as they will benefit from increased economies of scale, have a stronger bargaining position with medical schemes, and thus, allow them to compete with the established operators.
Investment in brownfield projects
The Company will invest in brownfield hospital projects with opportunity to further develop and consolidate to enhance value and support longer-term income and capital growth. RH Bophelo will insist on the securing of licences and land by the project sponsors, to ensure commitment and alignment of interests.
Other healthcare funds and related healthcare sub-sectors
The Company will invest in select healthcare funds and related healthcare sub-sectors which present an attractive opportunity and in which RH Bophelo and the Management Company see value and can generate returns to shareholders.
RH Bophelo will seek investment opportunities from the following sources:
- RH Bophelo and Management Company’s project pipeline.
- Sponsors, advisors and investment banks that independently approach the Company.
- Other funds or investment vehicles interested in co-investment arrangements.
- Projects that associates of the Company and Management Company (being RH Managers and the Razorite Healthcare and Rehabilitation Fund) bring to the Company.
The Company will be transparent in its strategy, such that it is clear to all stakeholders how and why each investment is made, and that there is no inappropriate political, ideological, or personal interest in investments made.