Indian healthcare is growing not only in terms of revenue but also in employment. From a market size of US$99 billion in 2015, the Indian healthcare sector is expected to grow at 12% CAGR over the next decade due to increasing per capita disposable income, rising urbanization and growing health awareness, rapidly shifting disease pattern from acute to chronic and growth in domestic healthcare infrastructure.
The Indian healthcare sector is expected to rank among the top three healthcare markets in the world and has been the most preferred destination for private equity funds in recent decades with a focus on hospitals, medical devices, manufacturing, etc.
The need for private equity investments occurs due to the dearth of capital in the hospitals. Here private equity firms come into the picture by adding value through their networks and strategic partnerships, industry knowledge, and expertise, which may improve the performance of the hospital. Private equity firms invest in Indian hospitals to grow rapidly within a short period and for quick & good returns on their investments and grow the hospital.
India is fast becoming a favorite destination for private equity players due to the high economic growth, low-cost labor, and availability of opportunities in many untapped sectors. Moreover, the recent government moves to boost the ease of doing business like relaxation in FDI norms, strengthening of research and development (R&D) and intellectual property rights (IPR) regime, along with policies promoting the start-up culture, have inspired investments from equity funds in India.
All these factors including recent favorable government policies are responsible for attracting domestic and foreign investments from private equity (PE), venture firms, and healthcare players. PE investments provide security and avenues for the growth of many healthcare organizations in the country. Quadria Capital, one of the top private equity funds in India, targets long-term capital appreciation through private equity growth capital investments in healthcare companies that have the potential to become a global leader in the healthcare sector. The fund’s investment plan is based on taking advantage of opportunities in the high-growth Indian healthcare sector over the next decade. Quadria Capital pursues an investment strategy based on high growth consumption and competency themes.
Quadria Capital 