The Brazilian health market has produced a multitude in the last decade. The most remembered name is that of Jorge Moll (Facebook). The curious thing is that, at 69, Moll is about to have the number 1 position on the list. The rise is a result of the impressive growth of its group of hospitals, Rede D’Or Sao Luiz.
From 2000 onwards, Moll has ceased to own a handful of hospitals and a network of imaging laboratories, Cardiolab, to become the owner of the country’s largest independent network of private hospitals valued at 15 billion to 18 billion reais, with 27 hospitals between Rio, Sao Paulo, Brasilia, and Pernambuco.
D’Or’s grandiose numbers are the result of his growth. And a recent change in legislation will help her make the next leap. The government has always kept the private hospitals market in Brazil closed to foreign investors. This, depending on the timing of each company, could be good or bad.
Anyone who wanted to sell the business to a gringo or open equity in the stock market could not. But those who wanted to grow had little competition. D’Or knew how to take advantage of the closed market era. To become Moll’s partner, BTG bought convertible debentures, as it has foreign investors in its funds.
From 2010, the year of BTG’s entry, Moll took advantage of the lack of competitors to go shopping. It was 11 in five years. In January, with the D’Or Empire already mounted, the limitation on foreigners in the hospital market was overthrown by the government.
Today, the American private equity fund Carlyle is negotiating to buy a 10% stake in D’Or. The fund is willing to pay from 1.5 billion to 1.8 billion reais – hence the company’s valuation of up to 18 billion reais. The deal is underway – the two parties have already made a cocktail party in late March in Rio de Janeiro.
More about Jorge Moll at https://scholar.google.com.br/citations?user=Sl4KAXcAAAAJ&hl=pt-BR