Advent International to invest $105m CARE Hospitals
Advent International will invest $105 million in multi-specialty hospital chain CARE Hospitals, representing its third investment in India.
Advent will acquire shares from some of the existing investors and also inject additional capital into the business, with a view to consolidating CARE's market position and support future growth opportunities such as expansion into tier-two cities.
Founded in 1997, CARE engages in cardiac care, neurology, nephrology and general medicine with 1,590 beds across 11 hospitals. The founders of the company will continue to run the business following Advent's investment.
"Our partnership with Advent provides us with the required resources and support to expand our presence and reiterates our commitment in providing the best in healthcare with compassion, to more people in India," Dr B. Soma Raju, founder of CARE Hospitals said in a statement.
Georg Stratenwerth, managing director of Advent India PE Advisors added there is tremendous potential in the Indian healthcare market and the partnership would bring relevant global experience to support CARE's expansion plans.
Since opening an office in Mumbai three years ago, Advent has also invested in CAMS, a transaction processing outsource firm for the mutual funds and insurance industries, and Element-K, a corporate e-learning business acquired through Advent's North American portfolio company SkillSoft.
India's healthcare market - thought to be worth $40 billion - is on the radar of private equity investors. According to AVCJ Research, PE firms have committed $430 million to Indian healthcare companies across nine deals so far in 2012. Hospitals and healthcare centers have accounted for five transactions and around 85% of the total spending.
Last month, Government of Singapore Investment Corp. (GIC) invested $100 million for a minority stake in Vasan Healthcare, which runs eye care hospitals across India. In January, Olympus Capital Asia also committed a similar amount in DM Healthcare, which operates hospitals, medical centers and pharmacies in India and the Middle East.
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