Foundation Holdings, an investment firm focused on the healthcare and education sectors, is looking to double its assets under management to Dh1 billion this year as it continues to build its portfolio of investments in the GCC and India.
"We are going to swing to Dh1bn in assets under management as an investment company," Abhishek Sharma, chief executive of the firm told The National. "This is the goal we have set ourselves this year."
The Dubai-based investment company, which counts Air Arabia’s chief executive Adel Ali among its shareholders, has up to $150 million (Dh550m) in funding to deploy on new investments. The company, which has been conserving cash for more than a year, has the backing of the board and key shareholders to actively look for deals, given an increase in opportunities and a drop in asset valuations in the wake of a coronavirus-driven economic slowdown.
“The commitment [for funds] we always have from our shareholders is anywhere between $100m to $150m and that’s the cheque we can comfortably drawdown and work with,” Mr Sharma said.
The direction from the board is to “go with a bucket [of cash] in hand and not a little cup” as this is the time to invest and make money, he added.
The company has a current deal pipeline worth about Dh650m and Mr Sharma expects to close a few transactions this year. These potential deals are split between education technology and pre-kindergarten markets as well as bolt-on acquisitions by portfolio companies, he said.
“The filter has never been bigger in three and-a-half years. There is a huge amount of opportunities that we are seeing right now,” he said.
The coronavirus crisis has brought investors’ focus sharply back on the fundamentals and business models of target companies, he said. Valuations are still important but are not the only consideration in deals right now.
“We are sharpening our pencils very carefully,” he said. “We are looking for companies that have bulletproof business model[s].”
Foundation Holdings' most recent deal is a joint venture with MindChamps PreSchool, a publicly-listed early learning institution with centres in Australia and Singapore. The JV fund aims to raise an initial tranche of between $50m and $100m to acquire and establish preschools across the GCC. The company last year also formed a JV with India’s Ryan Group, which runs about 150 schools in Asia’s third-largest economy. Ryan EduNation, as the venture is known, will invest $100m in kindergarten to 12th grade schools across the country.
"We are going to swing to Dh1bn in assets under management as an investment company," Abhishek Sharma, chief executive of the firm told The National. "This is the goal we have set ourselves for this year."
Foundation Holdings is currently working on a partnership deal with a company from South-East Asia, which specialises in education technology, bringing “bricks and clicks” together. “This could be a game changer for Foundation [Holdings],” Mr Sharma said. “It will shake up the region in a positive way, given the scale and impact of the platform,” he said, without giving further details. The transaction is especially timely given that billion of pupils across world have been forced to adapt to distance learning in the wake of the pandemic.
The K-12 private education market in the GCC over the past few years has attracted a lot of the investor attention. This segment is expected to double over a five-year period to $26bn by 2023. In Saudi Arabia the K-12 private education market is poised to rise to $12bn in 2023 from just $5bn in 2017, according to a 2018 Boston Consulting Group report.
Foundation Holdings, which has invested about $150 million over the last three years through seven investment deals, is bullish on the outlook of both the healthcare and education sectors in the region, operating partner Karim Idilby said.
Within both markets, “you need to peel the onion four or five times to come down to the [right] sub-segment to find out where the opportunity really exist[s]”, he said. “What the current crisis is doing is that it really brings to the fore the concept of focus on specialisation.”
Investments so far include a “value healthcare operator” called Right Health. The UAE-based venture specialises in providing medical services to lower-income workers. All of its 57 facilities across the country are “located in and around the most populated labour communities”, he said.
“This unparalleled scale and reach has enabled us to not only support the communities that we are serving but also support other providers,” Mr Idilby added.
“Now it’s about how we drive our business growth, both organically and inorganically, should the opportunity arise. It is primary care, value healthcare, accessibility and affordability – that’s what’s it is all about and this is where our laser-like focus is.”
According to a 2018 GCC Healthcare Industry Report by Alpen Capital, current healthcare expenditure in the Gulf is projected to reach $104.6bn in 2022 from an estimated $76.1bn in 2017, implying a compound annual growth rate of 6.6 per cent.
Foundation Holdings last year entered the eye healthcare space in India by acquiring a stake in ASG Hospitals. It has also formed One Living, a Dh1bn joint venture with UAE real estate developer Bloom Holding, to build accommodation for teachers and doctors at different locations in the UAE.
In Saudi Arabia, the company has invested in Promedex, a provider of medical implants and devices used in orthopedics and general surgery. The medical services firm is currently catering to 140 hospitals in the kingdom, Mr Idilby said, adding that it sees “a huge opportunity” to further expand into the kingdom.
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Poacher
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Scoreline:
Manchester City 1
Jesus 4'
Brighton 0
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
MATCH INFO
Northern Warriors 92-1 (10 ovs)
Russell 37 no, Billings 35 no
Team Abu Dhabi 93-4 (8.3 ovs)
Wright 48, Moeen 30, Green 2-22
Team Abu Dhabi win by six wickets
NATIONAL%20SELECTIONS
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New schools in Dubai
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
England World Cup squad
Eoin Morgan (capt), Moeen Ali, Jofra Archer, Jonny Bairstow, Jos Buttler (wkt), Tom Curran, Liam Dawson, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, James Vince, Chris Woakes, Mark Wood
Zakat definitions
Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.
Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.
Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.
Zakat Al Fitr: a donation to charity given during Ramadan, before Eid Al Fitr, in the form of food. Every adult Muslim who possesses food in excess of the needs of themselves and their family must pay two qadahs (an old measure just over 2 kilograms) of flour, wheat, barley or rice from each person in a household, as a minimum.
More coverage from the Future Forum
RACECARD
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The five pillars of Islam
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
The biog
Name: James Mullan
Nationality: Irish
Family: Wife, Pom; and daughters Kate, 18, and Ciara, 13, who attend Jumeirah English Speaking School (JESS)
Favourite book or author: “That’s a really difficult question. I’m a big fan of Donna Tartt, The Secret History. I’d recommend that, go and have a read of that.”
Dream: “It would be to continue to have fun and to work with really interesting people, which I have been very fortunate to do for a lot of my life. I just enjoy working with very smart, fun people.”
UAE currency: the story behind the money in your pockets
BLACKBERRY
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ENGLAND%20SQUAD
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Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
More from Aya Iskandarani
Sonchiriya
Director: Abhishek Chaubey
Producer: RSVP Movies, Azure Entertainment
Cast: Sushant Singh Rajput, Manoj Bajpayee, Ashutosh Rana, Bhumi Pednekar, Ranvir Shorey
Rating: 3/5
MATCH INFO
Everton 2 (Tosun 9', Doucoure 93')
Rotherham United 1 (Olosunde 56')
Man of the Match Olosunde (Rotherham)
What is Reform?
Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
COMPANY%20PROFILE
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The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
Asia Cup Qualifier
Venue: Kuala Lumpur
Result: Winners play at Asia Cup in Dubai and Abu Dhabi in September
Fixtures:
Wed Aug 29: Malaysia v Hong Kong, Nepal v Oman, UAE v Singapore
Thu Aug 30: UAE v Nepal, Hong Kong v Singapore, Malaysia v Oman
Sat Sep 1: UAE v Hong Kong, Oman v Singapore, Malaysia v Nepal
Sun Sep 2: Hong Kong v Oman, Malaysia v UAE, Nepal v Singapore
Tue Sep 4: Malaysia v Singapore, UAE v Oman, Nepal v Hong Kong
Thu Sep 6: Final
Asia Cup
Venue: Dubai and Abu Dhabi
Schedule: Sep 15-28
Teams: Afghanistan, Bangladesh, India, Pakistan, Sri Lanka, plus the winner of the Qualifier
KILLING OF QASSEM SULEIMANI
Small Victories: The True Story of Faith No More by Adrian Harte
Jawbone Press
Indika
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Match info
Uefa Nations League Group B:
England v Spain, Saturday, 11.45pm (UAE)
Roll%20of%20Honour%2C%20men%E2%80%99s%20domestic%20rugby%20season
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