PE firm Everstone prepares to exit India’s Sahyadri Hospitals

Photo: Pixabay

Private equity firm Everstone has initiated the process to exit Sahyadri Hospitals two years after backing the institution. It is targeting an internal rate of return (IRR) of 50-60%.

Private equity and venture capital firms typically look at a 5-6 year investment horizon and target an IRR of 20-30%. Seven to eight investors have shown interest to invest in the hospital chain, two people familiar with the development said, seeking anonymity.

However, they did not disclose the names of prospective investors, as it is “too early”.

An investment banker, who led several healthcare deals, said private equity-backed hospital chains are poised to command a higher valuation in this market over those that have just one or two units.

“Private equity-backed hospital which are one or two locations is at early double-digit multiple of Ebitda, whereas chains like Sahyadri, Paras Hospital and Asian Institute of Medical Sciences hospital are likely to command mid to late teen multiples,” he said, also seeking anonymity.

Everstone agreed to acquire a controlling stake in Sahyadri in April 2019 and completed the transaction a few months later. Founded by neurosurgeon Charudutt Apte in 1994, Sahyadri has eight hospitals with over 900 beds in Maharashtra.

This article was first published on livemint.com

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.