SINGAPORE - Dubai- and Singapore-headquartered healthcare private equity firm TVM Capital Healthcare said on Tuesday it had raised around $250 million for its fund that focuses on investing in Saudi Arabia's healthcare sector.

TVM Capital said in a statement that the Afiyah Fund raised the money from a group of Saudi Arabian, Gulf Cooperation Council and European investors, led by Jada, a Saudi Arabia's Public Investment Fund's (PIF) fund of funds company.

It added that the fund is expected to include co-investments from investors which it anticipated will mobilize a total of $400 million to $500 million in Saudi Arabian and international companies with expansion projects in the kingdom.

TVM Capital said among the fund's first investments are Riyadh-based post-acute care and rehabilitation clinics chain Baraya Extended Care, and Amsterdam-based wound care company DEBx Medical that is expanding into Saudi Arabia.

(Reporting by Yantoultra Ngui; Editing by Rashmi Aich)