Adva Healthcare Fund, LP

The ADVA Healthcare Fund provides access to the under-developed Russian/CIS healthcare markets, which we anticipate are well positioned for strong long-term sustainable growth owing to several factors:

• Broad macroeconomic improvements derived from natural resources wealth;

• A growing consumer class, rising disposable incomes & low levels of consumer debt;

• Substantial aging of the region’s population over the medium term;

• High fragmentation among many market segments offering significant consolidation opportunities;

• Substantial sector underinvestment compared to developed markets; and

• Renewed public sector support for increased healthcare investment.

These factors indicate significant opportunities for private enterprise, in which a targeted private equity investment fund such as ours can play a leading role.

Financial description

The Fund will seek to achieve high investment returns via growth capital and buyout investments in companies operating in Russian/CIS healthcare market segments including, but not limited to, pharmaceutical retail (consolidation and privatization), pharmaceutical production, private clinics, specialist services, contract research organizations, healthcare information services, medical devices, and other healthcare related fields.
Based on our internal research and modeling, we anticipate that we should be able to achieve returns at or above 25% IRR for the Fund’s overall portfolio, with individual investment cases generating 30% IRR or higher. These expectations (a) are derived from publicly available information as well as our team’s experience with other investments and our overall exposure to the Russia/CIS private equity industry and (b) are consistent with the returns generated by similarly situated private equity investors in our target geographies.