Everstone acquires IDFC-backed India hospital chain

Sahyadri was founded in 1994 and currently manages 900 beds across its facilities, with more than 1,000 clinicians and 2,300 supporting staff. According to AVCJ Research, IDFC first invested in the company in 2008, committing INR1.4 billion (then $35.5 million), and returned in 2012 with a further INR3 billion.

Everstone will invest in Sahyadri through a combination of primary and secondary shares; it has not been announced whether IDFC will exit.

India’s healthcare sector is expected to be worth more than INR16 trillion by 2020, with healthcare delivery making up the largest share of overall revenue. With government healthcare spending failing to keep pace with the growing demand, particularly the rising incidence of chronic illnesses such as heart disease and cancer, investors see an opening for private hospital operators to pick up the slack.

Everstone plans to make Sahyadri the anchor asset of a healthcare delivery platform that will leverage the firm’s experience in the healthcare sector. Its previous hospital investments include Ravindranath GE Medical, operator of the Global Hospitals brand, which the firm exited to IHH Healthcare for INR12.8 billion in 2015.

Everstone is active across multiple areas of the healthcare sector, particularly through its Southeast Asia-focused Everlife platform, which recently made its first commitment in India to medical device manufacturer CPC Diagnostics. Currently, the firm is investing its third fund, which closed at $730 million in 2015.

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• Topics
• South Asia
• Buyouts
• Healthcare
• India
• Everstone Capital
• IDFC Private Equity