The Venture Intelligence Blog

An Indian Express article quotes Venture Intelligence data on Private Equity investments in Hospitals: Data sourced from Chennai-based research firm Venture Intelligence shows that a total $3.4 billion has been injected into hospitals by PE investors from 2007 till 2017. Notably, almost half of the investment during the period came via 10 transactions. Prior to the Fortis deal, the largest one was in early 2016, when Dubai-headquartered Abraaj Group bought controlling stake in Hyderabad-based CARE Hospitals for around $221 million. In two deals in 2015 and 2017, Manipal Health raised $321 million from TPG Capital and Temasek Holdings, respectively. Naresh Trehan-led Medanta Medicity, in two deals in 2013 and 2015, received $275 million from Carlyle Group and Temasek, respectively. Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Val...

(Click to View) Outlook Business quotes Venture Intelligence data in an article titled  Change Of Heart  covering the recent good exits by PE/VC funds in the Healthcare segment and trends going forward. "there have been 24 PE exits worth $720 million in 2015, the highest since 2011, according to Venture Intelligence. Many of the exits have been via IPOs." "PE exits through IPOs have yielded returns as high as 4.53x — when Ridgeback Capital sold its stake in Granules India in 2015. Thyrocare Technologies, whose IPO in May this year yielded a return of 3.5x for CX Partners, seems like it was a matter of good timing." The IPO of Narayana Hrudayalaya, a multi-specialty hospital chain, also generated significant interest and was eventually oversubscribed around 8x.  "The private sale of Intas Pharmaceuticals by ChrysCapital to Temasek Holdings got returns of 17.6x, much higher than the public exit of Baring India from Indoco Remedies at 5.2x, accordi...

A Business World article titled  Healthcare Sector At Inflection Point discusses trends in Healthcare Industry as Private Equity interests in the sector continue to gain in recent times: Over the last few years, many PE funds have set-up dedicated healthcare-focused funds viz. Asian Healthcare fund, Quadria Capital, Sabre Partners, etc. For the 12-month period that ended in May 2016, the Indian Healthcare sector attracted investment of over $780 million from PE investors — 4.2 per cent of the total PE investment of $18.7 billion, according to deal database Venture Intelligence. Trends to be seen: 1. Consolidation of Healthcare Companies Availability of large capital, on the back of recent IPO success, increased PE investment in the sector and increasing global strategic investors in India will consolidate the share of organised players. e.g. IHH Healthcare, Malaysia acquired the majority stake in Global hospitals for over $200 million. Other players like Netcare (leading...

A Business Standard article by Ranju Sarkar uses Venture Intelligence exit data, to analyse exits in Healthcare & Pharmaceuticals sector. Recent Healthcare IPOs have also delivered good returns for PE/VC investors, Catch our analysis of these companies through the links below: Thyrocare Technologies IPO Healthcare Global IPO Dr. Lal Pathlabs IPO Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.  Click Here to Sign Up for the FREE Weekly Edition of the Deal Digest: India's First & Most Exhaustive Transactions Newsletter.

"Dr. Lal PathLabs IPO subscribed 33.41 times" "Dr Lal PathLabs zooms 50% on debut" Will the latest Private Equity-backed diagnostic chain to go public - Thyrocare Technologies - also enjoy similar headlines to Dr. LalPath when it completes it IPO - opening this week - and subsequently lists? Venture Intelligence maps the financial performance, investor returns and the valuation growth of Thyrocare (and benchmarks it to its peer that went public in Dec-15). Check out Venture Intelligence's analysis of Dr. Lal Path Labs IPO. Interested in seeing transaction level data for PE/VC Investors in Thyrocare? Take a trial to Venture Intelligence Deal Databases with tons of information on transactions, valuations and financials on private companies. Like this infographic? Sign up for more via our FREE newsletter. Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private...

Trends from the Transactions Universe There have been at least eight M&A transactions involving pure play Contract Research Organization firms between January 2014 and May 2015 - versus just five deals in the entire three year period prior to 2014. Of these transactions, four have been domestic deals and three Inbound. The only Outbound transaction was GVK Biosciences' acquisition of US-based Aragen Bioscience which specializes in high-value biologics services. The Sequoia Capital India-backed GVK Bio was also a buyer domestically - acquiring Chennai-based Vanta Bioscience which offers toxicology evaluation services for the pharmaceutical, biotech, food supplements and feed additives industries. (GVK also excercised its call option to buy out Dai-Ichi Karkaria's entire stake in their joint venture Inogent which offers a mix of services  - Process R&D and Custom Chemical Synthesis & Manufacturing - and Products - APIs and Intermediates.) While GVK has been a b...

From the Press Release: Jaipur-based Rajasthan Venture Capital Fund (RVCF) has acquired 11% equity stake in Chennai based cardiac care hospital Frontier Lifeline Private Limited for an undisclosed amount. RVCF invested in the company through its Rs 200 Cr SME Tech Fund which invest pan India in IT, education, , healthcare, agro products, auto components and other growth sectors. Girish Gupta, CEO of RVCF will joining the board of the company. Established in 2003, the company is primarily engaged into running cardiac specialty hospitals at various locations including Chennai, Parumala (Kerala), Thrivalla (Kerala). The company is implementing its Contract research, Tissue engineering and Educational initiatives through its integrated healthcare park “Frontier Mediville” located around 45 kms from Chenna in 106 acres. The company is promoted by Padmashree Dr. KM Cherian who is considered to be the pioneer in pediatric cardiac surgery in India, and has held prestigious positions in India a...

Businessworld has a cover story on the rise of specialty hospital chains - most of them Private Equity-backed including eyecare-focused Vasan Healthcare, urology-focused RG Stone and cancer-focused HCG - and the new business models they are experimenting with. There are reasons, however, why things could just click for these protagonists. One, many of them are in specialties such as ophthalmology, day-care surgery and dialysis care involving lower capital expenditure. For instance, a cardiac hospital or a multi-specialty tertiary care hospital costs an average of Rs 60-70 lakh per bed, excluding the real estate cost, says Singh of Technopak. That works out to Rs 60-70 crore for a 100-bed hospital. Cash break-even typically takes about three years. But the set-up cost for these specialties per centre would be within of Rs 10 crore. An important factor is that in-patient stay is rarely required since a number of these are day procedures. This minimises the need for support infrastructur...

Business Today has a profile of Shivinder Mohan Singh of Fortis Healthcare The 33-year-old Managing Director of Fortis Healthcare is targeting a top line of a billion dollars by 2012 by creating a chain of 40 hospitals with 6,000 beds. At the end of last fiscal, Fortis had revenues of Rs 630 crore (roughly $130 million), 28 hospitals and 3,300 beds. He hopes to get there with an aggressive mix of organic growth, acquisitions and management contracts. Fortis is well-placed financially to pull off this growth gambit. After raising Rs 650 crore with an initial public offering in October 2006, Singh now has a Rs 1,000-crore rights issue on the anvil. ...Singh’s vision is to bring the Mayo Clinic or a John Hopkins experience to India. “For us a Mayo or a Hopkins Clinic stands for scale and super-specialty care,” says Singh, who is building an ambitious 1,000 bed hospital in Gurgaon, which will be India’s largest multi super specialty hospital. Arun Natarajan is the Founder & CEO of Ven...

Forbes India has a profile of heart care specialist Narayana Hrudyalaya and how it is adopting Wal-Mart style "scale economics" to the healthcare business. A heart surgery here costs Rs. 110,000, much less than what it costs elsewhere. Even so, you pay the full price only if you can afford it. Many don’t pay at all. In 2008, out of 6,088 heart surgeries at the Bangalore centre, only 1,232 were fully paid for. Yet, the hospital makes a tidy profit. The Narayana Hrudyalaya group had a turnover of close to Rs. 300 crore in 2008-09, up from Rs. 150 crore in the previous year. Narayana Hrudayalaya is now moving to have the largest number of beds in the country, beating Apollo Hospitals which has 6,000. It is creating multi-specialty “Health Cities”. The Bangalore facility will be ramped up to 5,000 beds. In addition to the 1,000-bed heart hospital, it has new cancer, orthopedic and eye hospitals. In the next two years, it will add two more, one for women and children and another ...