Blue like an Orange Sustainable Capital invested R$30m in Placi, a Brazilian company specialized in transitional hospital services to long-term care patients.
(Press Release) Blue like an Orange Sustainable Capital closed on 27 August 2020 its structured financing to Placi—a Brazilian company specialized in transitional hospital services to long-term care patients, and a pioneer in the development of the sector in the country. The transaction aims to support the Company’s founders and FinHealth, a Brazil-based private equity and venture capital firm, in pursuing a long-term growth plan for Placi.
The Company is developing an integrated care network providing long-term care patients an alternative to the binary choice of a prolonged traditional hospital stay and a release to home care. By offering a complementary healthcare solution, Placi makes beds available at traditional hospitals for the treatment of acute and more medically complex patients, as well as offers families an option for specialized and affordable care for their members. The Company provides transitional hospital services to the middle income class, primarily covered by private health insurance, including corporate and government employees.
Placi aims to provide a welcoming, home like environment in its facilities. Specialized therapies, including physiotherapy, occupational therapy, art therapy, among others, allow for custom therapeutic goals and a medical plan aligned with the expectations of the patients and family members. Patients are able to participate in several celebrations and group activities, being in close contact with their families (including the option of a dedicated caregiver), which helps them engage and motivates socialization throughout the recovery process.
Senior management is committed to the improvement of healthcare, with numerous quality standards already in place at the facilities. Placi’s team has established a relationship and continuous dialogue with the key players in Brazil today, working towards setting up an accreditation association for transitional care.
“We are very proud and enthusiastic about the transaction with Blue Like an Orange. In addition to providing funds to boost growth, we are confident that their expertise will be valuable in supporting the Company in this challenging and exciting moment”, said João Paulo Baptista, founder and CEO of FinHealth, manager of BBI Financial I, which holds a majority stake in Placi.
“It’s a privilege to work together with Blue Like an Orange. The entire team is highly motivated and focused on growing and developing the Placi care model with passion and excellence”, said Carlos Chiesa, CEO of Placi.
In addition, Placi is currently playing an important role in the fight against the COVID-19 pandemic, admitting patients in the recovery phase, but still requiring professional medical care, and oftentimes ventilators. By transferring these patients to a transitional care facility, the beds at traditional hospitals are available to treat more complex COVID-19 and other non-pandemic related patients.
In 2019, Placi received 300 patients and provided over 20,000 hours of therapy. With the financing from Blue like an Orange, Placi will expand its current operations, and build new facilities, being able to provide care to over 1,200 patients annually, after the expansion is completed. The Company has over 70% of female employees in its workforce and it will generate further employment opportunities to support its growth plan, including first-time employment.
“Placi brings a transformational approach to the Brazilian healthcare system, offering a tailored and affordable care alternative for the well-being of patients and their families. We are thrilled to support its management and partner with FinHealth in this growth trajectory going forward”, commented Cristina Penteado, Managing Director and Head of Brazil of Blue like an Orange.
The expected development outcome supports several United Nations Sustainable Development Goals, including but not limited to: SDG 3 (Ensure healthy lives and promote well-being for all at all ages), SDG 5 (Achieve gender equality and empower all women and girls), SDG 8 (Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all).
The investment is the fifth transaction announced by Blue like an Orange Sustainable Capital, and the second investment in Brazil.
About Blue like an Orange Sustainable Capital
Blue like an Orange Sustainable Capital seeks opportunities to lend to companies and projects that deliver both strong risk-adjusted returns and positive social impact in support of the UN’s Sustainable Development Goals. Blue like an Orange Sustainable Capital focuses primarily on Sustainable infrastructure & Technology Enabled Services, Social Infrastructure (Healthcare and Education) & Agriculture and Access to Finance. The Company strives for sustainable development outcomes to foster inclusive and sustainable growth without a trade-off with respect to market level rates of financial returns. Blue like an Orange Sustainable Capital’s founding partners are Bertrand Badré, Amer Baig, Suprotik Basu, Rashad Kaldany and Emmanuelle Yannakis. For more information, please visit http://www.bluelikeanorangecapital.com
About FinHealth
FinHealth is a private equity and venture capital firm focused exclusively on venture and growth capital investments in healthcare companies of tomorrow. Finhealth’s mission is to invest in pre-commercial or commercial stage companies with highly differentiated products, technologies or services, achieving exceptional and consistent returns for their investors. FinHealth is primarily focused on Healthcare Services (specialized hospitals and clinics), Biopharmaceuticals for human health (including innovative drug development), Medical Devices/Diagnostics, Diagnostic Services and Digital Health. The Company builds long-term partnerships with entrepreneurs, investors, and industry collaborators creating trust, credibility, and value in business relationships.
Founded in 2009, FinHealth presently manages a portfolio of five leading innovative healthcare companies based in Brazil. BBI Financial I managed by FinHealth holds a controlling stake of GF Participações S.A. (Placi Cuidados Extensivos). For more information, please visit http://www.finhealth.com.br
About Placi
Placi started its operations in 2013 with a small infrastructure of only 30 beds. As a pioneer in the market, Placi has developed a new concept of hospital services in Brazil. In the first years of operation, Placi leaders were dedicated to introducing the transitional hospital model and presenting its main areas of care– rehabilitation, functional adaptation (adaptation to impairments and limited activities), and palliative care – to healthcare constituents.
Currently, the Company operates two hospitals, with beds occupancy rate of over 90%. Placi is implementing an accelerated growth plan, including the expansion of existing units, opening another facility in Rio de Janeiro, and two facilities in the capital city of Brazil, Brasília. The transaction with Blue Like an Orange will allow Placi to reach 360 beds in the next three years. For more information, please visit http://placi.com.br
