TPG taps India healthcare sector

The firm has invested $145m in Bangalore’s Manipal Health Enterprises

Global private equity firm TPG Capital has agreed to take a significant minority stake in Manipal Health Enterprises in India, one of the country’s largest hospital groups, according to a statement.

The firm is investing INR 9 billion ($145 million; €130 million) in the business, which is the healthcare unit of Manipal Group, a private conglomerate focusing on healthcare, education and research.

The business owns and operates 10 multi-specialty hospitals in the Indian states of Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu and Goa and also manages five teaching hospitals and several fertility clinics across the country. Outside India, Manipal indirectly owns and operates a hospital in Malaysia and manages a clinic in Nigeria.

“We are excited about working alongside MHEPL as the company strengthens its world-class network of hospitals and progresses towards its strategic ambition of expanding its footprint in India,” Puneet Bhatia, head of TPG India, commented.

“We have identified a business with extensive global experience and expertise in healthcare, a sector supported by robust growth drivers and with a critical role to play for social advancement in India.”

TPG is one of many private equity investors putting money into India’s healthcare sector. The value of private equity dealflow in India reached $10.9 billion last year, a 47 percent increase year-on-year and second only to the record $14.5 billion invested by the industry in 2007, with the second most popular sector being healthcare.

Moreover, last month, AIF Capital secured an exit from Famy Care, an oral contraceptive pill producer based in Mumbai, for $750 million, Private Equity International reported earlier. Return information on the transaction was not disclosed.

Other firms active in the sector include Kohlberg Kravis Roberts, OrbiMed Partners and Advent International.