Page 42 Bain Capital Healthcare
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HEALTHCARE SERVICES
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 Global 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 in the North America 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.
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
Private Equity
WEBSITE
gndi.com.br
HEALTHCARE SERVICES
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 Global 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 in the North America 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.
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
Private Equity
WEBSITE
gndi.com.br
