Actis exits Sri Lankan hospital stake

The emerging market fund’s investment in Asiri Hospitals Group is understood to have generated an IRR of more than 25%.

Emerging market specialist Actis has sold its entire 28 percent stake in Asiri Hospitals Group to TPG Growth, it said.

Its investment was made in 2012 through its Actis Emerging Markets 3 fund, a €2.7 billion, 2007-vintage vehicle. It is understood to have generated an internal rate of return of more than 25 percent.

The value of the deal was not disclosed.

Asiri is a multi-speciality hospital group based in Sri Lanka and controlled by Sri Lankan conglomerate Softlogic Group. It specialises in neurology, cardiology and urology, operating four hospitals with 570 beds, representing approximately a third of the private hospital capacity in Sri Lanka.

“We’ve seen significant growth opportunities in healthcare across the globe, particularly in Asia, as individuals increasingly choose private medical treatment for the quality of care offered by these institutions,” said TPG Growth senior healthcare advisor in Asia Vishal Bali, who will join Asiri’s board.

TPG’s investment will help the group expand and upgrade its operations in the local market and perhaps other Asian markets, Asiri chairman and managing director Ashok Pathirage, who is also the chairman and MD of Softlogic, said in a statement.

Actis said that it would continue looking for opportunities in Sri Lanka where it has a track record, previously investing in South Asia Gateway Terminals, which operates the Port of Colombo, and industrial gas supplier Ceylon Oxygen.

In early December, TPG Growth acquired TB Corporation that owns the Taco Bueno restaurant chain in the US from Palladium Equity, as reported by Private Equity International.