Asia Healthcare Holdings (AHH), the healthcare platform set up by American private equity fund TPG Capital, is in talks to raise as much as $100 million by selling a significant minority stake, two people directly aware of the PE firm’s fundraising plans said.
TPG has hired Kotak Investment Banking to handle the transaction, the people cited above said, requesting anonymity.
“Several sovereign and global PE funds have shown interest,” said one of the two people cited above. “The overall valuation and the exact quantum of stake that will be sold will be decided in further discussions,” the second person cited above said. “Overall, AHH is looking to raise anywhere between $80-100 million which will be used towards operating expenses as well adding new facilities.”
AHH currently owns TPG Growth’s investments in Bengaluru-based Rhea Healthcare Pvt. Ltd, which operates a network of mother and child care centres in India under the Motherhood brand; and Cancer Treatment Services International (CTSI), a network of single-speciality facilities across India.
A TPG spokesperson declined to comment, while an email sent to Kotak Investment Banking remained unanswered till the time of going to press.
Vishal Bali, a senior healthcare adviser to TPG Growth in Asia and a former group chief executive of Fortis Healthcare, has been named vice-chairman of AHH, Mint reported in August.
In December 2015, TPG Growth bought a stake in Asiri Healthcare, a Sri Lanka-based hospital and diagnostics chain from UK-based emerging markets PE fund Actis Capital. In the same year, TPG Capital bought a minority stake in Manipal Health Enterprises Pvt. Ltd, a part of the Manipal Education and Medical Group, for close to $126 million. Manipal Health owns and operates multi-specialty hospitals in Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu and Goa and manages five teaching hospitals in Karnataka and Sikkim, as well as several fertility clinics across the country.
Mint reported in August that the PE fund had decided to sell Bengaluru-based Healthium Medtech (formerly known as Sutures India Pvt. Ltd) and was in talks with several global PE funds and strategic buyers such as Boston Scientific and Covidien Medtronic. Mint reported in November that Bain Capital and Carlyle Group, Partners Group AG and Advent International have emerged as the key contenders to acquire the company for close to $425 million.
With overall investments close to $10.6 billion, healthcare forms a significant chunk of TPG’s global portfolio.