Carlyle invests in India’s Global Health Private
The Carlyle Group has acquired a minority stake in India’s Global Health Private, owner and operator of Medanta – the Medicity, a super-specialty Medanta hospital in the National Capital Region (NCR) of Delhi. The transaction facilitates the exit of Avenue Capital, an investor in the company since 2009.
The size of the deal was not disclosed but it was reported last month that Carlyle would pay around INR9.5 billion ($153 million) for Avenue's entire 24% stake. Subsequent reports indicate that the private equity firm has acquired 27-30% of Global Health, with Dr. Naresh Trehan, the company's promoter and a leading cardiac surgeon in India, exiting a small portion of his controlling stake.
The investment comes from an affiliate of Carlyle Asia Partners III, a 2008 vintage pan-regional fund with a corpus of $2.55 billion.
"We see high growth potential in the healthcare industry in India driven by improving income profiles leading to higher hospitalization and treatment frequency. And the National Capital Region of Delhi, where Global Health is operating, has rapidly emerged as a healthcare hub," Neeraj Bharadwaj, managing director of Carlyle, said in a statement.
Gurgaon-based Medanta - the Medicity specializes in cardiology, neurology, gastro, liver transplant and orthopedics. It has 900 beds, although this is set to expand to more than 1,300. Global Health also owns Medanta Mediclinic, an outpatient and daycare facility set up as an extension of the Gurgaon hospital, and the Medanta Duke Research Institute, which conducts R&D related to drugs, surgery, medical devices and equipment.
"Medanta today is a world-class research center, medical and nursing school facility," added Mark Harris, head of Asia and senior managing director at Avenue Capital. "We look forward to making similar investments in India and Asia."
This investment takes the total capital Carlyle has committed in India to approximately $1.1 billion as of September 2013.
According to AVCJ Research, it is also the private equity firm's first India deal for more than a year, following the acquisition of a minority stake in South India Bank in partnership with Multiples Alternative Asset Management for INR2.25 billion. Since then Carlyle has also made a full exit from Housing Development Finance Corp. (HDFC) and a partial exit from Repco Home Finance.
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