US growth equity firm General Atlantic has invested over $130 million in Hyderabad-based Krishna Institute of Medical Sciences (KIMS Hospitals), the latter announced on Wednesday.
The investment is a combination of primary capital and secondary purchases to acquire a significant minority stake in the company backed by private equity firm True North, said a statement.
True North bought a 40 per cent stake from Ascent Capital Advisors India Pvt Ltd and OrbiMed Advisors Llc for about $200 million in KIMS Hospitals in March last year.
“Given General Atlantic’s deep experience of investing in healthcare globally and its network of relationships across leading global healthcare institutions, we are confident that his new association will help KIMS Hospitals,” said Bhaskar Rao, MD and CEO of KIMS Hospitals.
Set up in 2004 by Dr. Bhaskar Rao, a renowned cardiothoracic surgeon, KIMS Hospitals operates seven multi-specialty hospitals across Andhra Pradesh and Telangana, with units in Secunderabad, Kondapur (Hyderabad), Nellore, Rajahmundry, Srikakulam, Ongole and Vishakhapatnam. The hospital claims to have a capacity of over 2,500 beds.
In addition to providing core medical, surgical and emergency services, the hospital provides complex and advanced quaternary healthcare in various specialties under disciplines such as neurosciences, cardiac sciences, oncology, orthopaedics, renal sciences, organ transplantation and gastric sciences.
Connecticut-based General Atlantic has been active in India since 1999 and has invested over $2 billion in the India and Asia-Pacific regions as of December 31, 2017. The firm focuses on investments across four sectors, including healthcare, technology, consumer, and financial services.
The firm’s portfolio of current investments in India includes Absolute Barbeque, Billdesk, Capital Foods, CitiusTech, House of Anita Dongre, IIFL Wealth & Asset Management, Mu Sigma, National Stock Exchange, and PNB Housing Finance.
Sandeep Naik, Managing Director and Head of India and Asia-Pacific at General Atlantic, said: “The combination of an acute shortage in quality healthcare infrastructure and a strong focus from the government to make quality healthcare more accessible, has created compelling secular tailwinds to drive growth for high-quality corporate hospital networks.”
General Atlantic was recently in the news for hitting a roadblock with its planned acquisition of Hyderabad-based Karvy Computershare Pvt. Ltd, jointly owned by Hyderabad-based Karvy group and Australian share registry firm Computershare Ltd. It is also reportedly among the three US-based private equity funds that have been shortlisted to acquire a controlling stake in the Indian arm of Pepe Jeans.
In other healthcare sector related developments, Apollo Hospitals, Narayana Health-Bain Capital, Manipal Hospitals and AION Capital were reported to be among suitors for Seven Hills Healthcare Pvt. Ltd, which owns and operates one hospital each in Mumbai and Visakhapatnam.
Bain Capital, which has teamed up with Narayana Health, was among the initial bidders of Fortis.