CDC finds partner for South Asia healthcare deals

The development finance institution has teamed up with Indian education and healthcare company Manipal Education and Medical Group to invest an initial $80 million in healthcare companies in South Asia and Africa.

UK’s development finance institution CDC Group is planning an initial $80 million investment in healthcare companies in South Asia and Africa alongside Bangalore-based Manipal Education and Medical Group.

The partnership will target “out of hospital” healthcare companies, ranging from diagnostic services to comprehensive home healthcare providers, the firms said in a statement. Apart from financing, CDC and Manipal will also provide companies access to professional management.

Healthcare companies specialising in molecular diagnostics and infectious diseases have already been identified for investment. CDC and Manipal are also looking to back companies “heavily reliant on new technology to improve quality of service and access,” the firms said.

Srini Nagarajan, CDC’s head of south Asia commented in a statement: “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 in India but increasingly in Africa too.”

CDC, with over £3 billion ($3.7 billion; €3.5 billion) of assets, has been a long-time investor in India, and has backed domestic funds managed by Multiples Alternate Asset Management, Rabo Equity Advisors and Lok Capital, according to PEI data.

Among its recent investments include, $50 million in India’s RBL Bank, $150 million in India Infoline Finance, and $48 million in Narayana Hrudayalaya Hospitals.

Education and healthcare company Manipal owns and operates campuses across India, Nepal, Malaysia, and the United Arab Emirates. The company also provides stem cell research services and manages various speciality hospitals and healthcare retail ventures. US private equity firm TPG bought one of its hospital chains, Manipal Health Enterprises, for $145 million in 2015.