Silicon Valley-based venture firm New Enterprise Associates (NEA) and GTI Group, a New York-based private equity firm investing in the US and in India, are backing the INR2.5 billion (€44.6 million; $53.8 million) expansion plans of India's Nova Medical Centres, the firms said in a statement.
The amount invested by the two firms has not been disclosed, but according to Indian media reports, the firms have invested a combined sum of $16 million in the company.
Nova, which was conceived and incubated by the GTI Group, will use the additional capital to set up 25 additional daycare centres in the region. “Day care surgery is growing to be the most sought after mode of surgical treatment and our centres are equipped with ultra modern facilities and technology to cater to the medical needs of our country,” Girish Rao, managing director and CEO of Nova Medical Centres, said in a statement.
In May 2009, Suresh Soni, co-founder and chairman of Nova and a partner at GTI, told PEI Asia GTI will invest about $50 million over two years in Nova to expand its operations. The firm will continue to lead Nova in its business ventures following the deal and continues to be the largest shareholder in Nova, the statement noted.
GTI is a proprietary fund which makes growth capital investments in lower middle market companies in India and the US. The firm focuses on investments in media and telecom, aviation, IT and software, industrial technology, clean technology, energy and energy services. It has offices in Bangalore and New York.
This investment in Nova comes in the wake of increased appetite for private equity deals in Asia’s healthcare sector.
Earlier today, a trade buyer and a consortium comprising Kohlberg Kravis Roberts and CVC Capital Partners were reported to have submitted separate A$1.84 billion (€1.27 billion; $1.56 billion) bids for Australian hospital operator Healthscope. The Australian company received another takeover offer last week from a private equity consortium reportedly comprising of The Blackstone Group, The Carlyle Group and TPG Capital.