India: KKR to pick 49% stake in Radiant Life Care for $200m

Photo by Piron Guillaume on Unsplash

Private equity major KKR & Co has agreed to buy a 49 per cent stake in hospital chain Radiant Life Care Pvt Ltd for $200 million.

Radiant Life Care’s facilities include BLK Super Speciality Hospital in New Delhi and Nanavati Super Speciality Hospital in Mumbai. KKR said it will make the investment through its KKR Asian Fund III.

The PE firm said it has previously, too, extended financing to the hospital management firm without disclosing further details.

“This is an exciting time for health care in India given the growing demand for superior medical treatment. In this industry, scale and operating leverage are increasingly important, and Radiant has a unique opportunity to acquire assets during a time of industry consolidation. KKR is focused on providing long-term capital solutions to experienced health care partners like the Radiant team to continue their work to deliver high-quality care and services,” said Sanjay Nayar, member of KKR and CEO of KKR India.

Radiant started BLK in 2010, a 650-bed hospital that it now plans to expand into a 1,600-bed quaternary care hospital. In 2014, it took over the operations of Nanavati, a 350-bed multi-specialty hospital. The company plans to transform Nanavati into a 1,000-bed quaternary care institute.

“KKR has been a long-term partner to Radiant and we are very excited to deepen our relationship with the firm, which shares our vision for health care excellence in India. KKR has more than two decades of experience investing in and working alongside health care companies, and with their expertise, we look forward to expanding our business. I welcome Sanjay and Nikhil on our board and the immense value they bring to us,” said Abhay Soi, chairman and MD of Radiant.

KKR, which manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds, has pumped in more than $3 billion through its PE practice in India since 2006. Its private equity portfolio in the country includes Aricent, Bharti Infratel, Avendus Capital, Cafe Coffee Day, Emerald Media, Magma Fincorp, Max Financial Services, and SBI Life.

India’s healthcare firms have been attracting PE investors of late. Paras Healthcare has announced its plans to raise $42 million (Rs 275 crore) from South- and Southeast-Asia-focused private equity firm Creador Advisors India. Recently, True North Managers LLP also said it will invest $200 million in Kerala Institute of Medical Sciences.

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