CDC, Manipal launch $80m emerging markets healthcare fund

According to a release the fund will target companies offering non-hospital services, including diagnostics providers and home healthcare companies, primarily in South Asia and Africa. The partners are already considering investments in an Indian molecular diagnostics company and an infectious disease research firm based in Africa.

Investments will focus on companies that have a strong presence in their respective markets and potential for building scale through acquisitions, but have difficulty expanding due to management or financial issues. In addition to providing financial support, CDC and Manipal will advise investee companies on management improvements and introduce them to potential business partners.

“We’re delighted to be working with Manipal, a strong operational partner, who have pioneered healthcare delivery and education in India,” said Srini Nagarajan, head of South Asia for CDC. “There is a global trend towards patients being treated closer to home and away from traditional hospitals. That’s why we’re providing long-term finance to the next generation of businesses that can help transform healthcare services beyond the hospital space.”

Both firms will continue to invest and operate independently in the target markets’ conventional hospital and healthcare space. CDC’s portfolio companies in this area include Narayana Hrudayalaya Hospitals and pediatric and maternity healthcare facility Rainbow Hospitals, while Manipal has invested Ankur Healthcare.

Manipal itself has attracted PE interest as well: both TPG Capital and True North (formerly India Value Fund Advisors), among others, have backed its hospital chain Manipal Health Enterprises. Manipal CEO Ranjan Pai is also a co-founder of Indian VC firm Aarin Capital.

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• Topics
• South Asia
• Healthcare
• Fundraising
• Growth
• India
• CDC Group