Invascent closes India healthcare fund at $250m hard cap - update
Invascent Capital, an Indian healthcare-focused GP, has closed its third vehicle at the hard cap of $250 million.
India Life Sciences Fund III (ILSF III) was oversubscribed, Invascent Managing Director Hari Buggana told AVCJ, and has already made three investments. Last year the firm acquired a stake in pharmaceutical developer Symbiotec PharmaLab from Actis Capital, alongside Motilal Oswal Private Equity, for a reported $100 million. The fund has also made minority investments in Strides Consumer Health and Intron Life Sciences.
Invascent closed its first fund, Evolvence India Life Sciences Fund (EILSF), in 2007 at $90 million. Dubai-based Evolvence Capital was the anchor investor in EILSF, but has had no affiliation with Invascent or the following vehicles. EILSF's investments included injectable drug maker Gland Pharma, to which it committed $30 million in 2008, and cancer care hospital chain Healthcare Global Enterprises. Both companies have since been exited, to KKR and Temasek Holdings respectively, along with the rest of EILSF’s portfolio.
ILSF II closed in 2014 with INR8.7 billion ($130 million) in commitments and is fully deployed across 12 investments including in-vitro fertilization clinic chain Oasis. The third fund is expected to follow a similar strategy to the previous two, committing $10-50 million per transaction to small and mid-size companies in the pharmaceutical, healthcare, animal health, and medical technology industries.
The value of India’s healthcare market is expected to grow to $372 billion by 2022 from $110 billion in 2016, according to the India Brand Equity Foundation. Drivers of the expansion include rising incomes and increasing access to insurance, coupled with the spread of “lifestyle diseases” such as heart disease and cancer.
A number of PE investors are seeking to take advantage of this growth, particularly in the pharmaceutical industry, which has accounted for more than two-thirds of healthcare-focused foreign direct investment since 2000. Recent deals in the space include a CX Partners-led investment in Veeda Clinical Research and the carve-out of Glenmark Pharmaceuticals’ Indian orthopedics division by True North.
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