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Bain Capital
Healthcare
Branching Out
When Bain Capital looked for new opportunities, we ventured
to less familiar territory: Brazil
When Bain Capital professionals first arrived in Brazil, we
were often asked, “What are you doing down here?”
In 2008, private equity activity in Brazil was scarce, with
investors shying away from the untapped but complex
market. At the same time, Bain Capital decided to leverage
our experience investing in U.S. hospitals and in complex,
cross-border investments by finding opportunities in
countries with similar market dynamics.
Brazil, it turned out, ranked very high on the list.
“After spending a lot of time there, we saw all the same kinds of
private-market analogs we’ve been successful with in the U.S.,”
says Chris Gordon, Co-Head of Bain Capital’s Private Equity
business and Global Head of Healthcare.
Among those similarities was a market that relied heavily
on private insurance. We soon were introduced to GNDI, a
market leader serving millions of patients in São Paulo. What
made GNDI unique? It was both the provider and the insurer,
delivering care through a captive network of healthcare
providers and facilities, allowing for coordinated, high-quality
and cost-effective care.
To drive the operating plan of the business, Bain Capital
not only recruited a new CEO, but also sent Michel Freund,
a Partner with the North American Private Equity team’s
Portfolio Group, to São Paulo to work alongside GNDI’s new
management team.
“There were a lot of operational challenges post-acquisition,
as this was a founder-based organization that needed
to be transformed into a fully professional world-class
organization,” Freund says. “The portfolio team could then
work and support the company in building an internal
capacity for M&A, while also driving growth strategy and
operating improvements.”
In a three-year period, GNDI completed eight acquisitions.
The team also knew that patients viewed GNDI more as a
low-cost provider rather than one that delivered high-quality
care. Changing that perception became a key component of
the long-term value-creation plan, so in addition to making
big investments in caregivers and facilities, GNDI launched a
major marketing campaign.
“It took a few years,” says Gordon, “but if you go talk to
people in Brazil now, GNDI is perceived as very high quality
and good value, not just the cheapest option.”
The surge in customer satisfaction was accompanied by
significant gains in market share, yet another effect of the
expanded go-to-market efforts.
Bain Capital and GNDI management sought to replicate
its success beyond São Paulo. GNDI’s significant growth
trajectory has continued since its 2018 IPO, creating value
for both patients and shareholders. In 2022, GNDI merged
with Hapvida to form Latin America’s largest vertically
integrated healthcare provider and insurer.
GNDI: Quick Facts
OVERVIEW
Market-leading integrated provider of
health and dental plans in Brazil, serving
thousands of companies and millions of
members
HQ
São Paulo, Brazil
INVESTMENT
2014
INVESTORS
Bain Capital Private Equity
WEBSITE
www.gndi.com.br
Bain Capital
Healthcare
Branching Out
When Bain Capital looked for new opportunities, we ventured
to less familiar territory: Brazil
When Bain Capital professionals first arrived in Brazil, we
were often asked, “What are you doing down here?”
In 2008, private equity activity in Brazil was scarce, with
investors shying away from the untapped but complex
market. At the same time, Bain Capital decided to leverage
our experience investing in U.S. hospitals and in complex,
cross-border investments by finding opportunities in
countries with similar market dynamics.
Brazil, it turned out, ranked very high on the list.
“After spending a lot of time there, we saw all the same kinds of
private-market analogs we’ve been successful with in the U.S.,”
says Chris Gordon, Co-Head of Bain Capital’s Private Equity
business and Global Head of Healthcare.
Among those similarities was a market that relied heavily
on private insurance. We soon were introduced to GNDI, a
market leader serving millions of patients in São Paulo. What
made GNDI unique? It was both the provider and the insurer,
delivering care through a captive network of healthcare
providers and facilities, allowing for coordinated, high-quality
and cost-effective care.
To drive the operating plan of the business, Bain Capital
not only recruited a new CEO, but also sent Michel Freund,
a Partner with the North American Private Equity team’s
Portfolio Group, to São Paulo to work alongside GNDI’s new
management team.
“There were a lot of operational challenges post-acquisition,
as this was a founder-based organization that needed
to be transformed into a fully professional world-class
organization,” Freund says. “The portfolio team could then
work and support the company in building an internal
capacity for M&A, while also driving growth strategy and
operating improvements.”
In a three-year period, GNDI completed eight acquisitions.
The team also knew that patients viewed GNDI more as a
low-cost provider rather than one that delivered high-quality
care. Changing that perception became a key component of
the long-term value-creation plan, so in addition to making
big investments in caregivers and facilities, GNDI launched a
major marketing campaign.
“It took a few years,” says Gordon, “but if you go talk to
people in Brazil now, GNDI is perceived as very high quality
and good value, not just the cheapest option.”
The surge in customer satisfaction was accompanied by
significant gains in market share, yet another effect of the
expanded go-to-market efforts.
Bain Capital and GNDI management sought to replicate
its success beyond São Paulo. GNDI’s significant growth
trajectory has continued since its 2018 IPO, creating value
for both patients and shareholders. In 2022, GNDI merged
with Hapvida to form Latin America’s largest vertically
integrated healthcare provider and insurer.
GNDI: Quick Facts
OVERVIEW
Market-leading integrated provider of
health and dental plans in Brazil, serving
thousands of companies and millions of
members
HQ
São Paulo, Brazil
INVESTMENT
2014
INVESTORS
Bain Capital Private Equity
WEBSITE
www.gndi.com.br
