TPG buys control of India maternity hospital operator

Founded in 2011 and based in Bengaluru, Motherhood has three maternity hospitals in Bangalore, and one each in Chennai and Hyderabad, plus a women's clinic in Bangalore. Facilities include high-end neonatal intensive care units, and a dedicated team of experienced gynecologists, neonatologists and pediatricians.

According to AVCJ Research, Peepul Capital invested $18.2 million in the business in early 2013. It isn't clear whether TPG's entry has facilitated an exit for Peepul, but VCCircle reported that the Rhea promoters had offered to buy back the private equity firm's stake. It also noted that the Rhea is promoted by the family of veteran Indian film actor Mammootty.

TPG said in a release that quality centers that offer specialized birthing and neonatal care are currently limited in India, but are increasingly in demand. As the country's middle class grows, mothers are seeking out exclusive care centers that offer a combination of clinical expertise and personalized attention for them and their child.

"In our work across the healthcare space globally, we've identified specialty care networks as an area where there is significant opportunity, especially in emerging markets where patients are just now starting to demand skilled specialists," said Matthew Hobart, a partner at TPG Growth, who leads the fund's healthcare investments.

Motherhood represents TPG Growth's third South Asia healthcare investment in the past eight months. It acquired Actis' 27.8% stake in Asiri Hospital Holdings, Sri Lanka's largest private hospital group, for LKR7.6 billion ($53.2 million) in December 2015. This was followed in April by the purchase of a 65% interest in Cancer Treatment Services International, a US cancer treatment chain focused on India and South Asia, for $33 million.

In 2013, TPG Growth invested in medical consumables manufacturer Sutures India and helped the company broaden its product portfolio and expand its customer base, which now covers more than 90 countries. Including Motherhood, TPG Growth's investments in healthcare companies across India and Sri Lanka now total nearly $250 million.

The firm is currently investing the TPG Growth III fund, its latest global middle market and growth equity investment vehicle, which closed last April at $3 billion.

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• Topics
• South Asia
• Buyouts
• Healthcare
• TPG Capital
• India