Healthcare private equity surged in 2024, led by large transactions across the globe, reaching an estimated $115 billion, the second-highest deal value on record, says Bain & Co’s Global Healthcare Private Equity Report. Within Asia Pacific, India emerged as the largest market, by volume, accounting for 26% of the region’s total deal volume, as it appeared to be more resilient to deal downturns than other countries.
Overall, North America continues to be the largest market, representing 65% of global deal value, with Europe and Asia-Pacific accounting for 22% and 12%, respectively.
According to the report, investors have demonstrated their confidence in India, with funds actively investing in providers, biopharma, and related services. India has consistently delivered favorable returns and has enabled a range of successful exits for PE firms through IPOs, strategic acquisitions, and sponsor-to-sponsor deals, it adds.
Successful PE exits with strong returns, such as Advent International’s $1.6 billion sale of BSV Group to Mankind Pharma, have also validated India’s buyout market, making it more attractive for future investment. India’s robust growth is expected to persist, with healthcare spending projected to climb to $320 billion by 2028.
Multiple funds (both bulge bracket and mid-market) are increasing their exposure to healthcare. Among some of the notable examples are Morgan Stanley’s acquisition of a minority stake in the Hyderabad Institute of Oncology; Blackstone’s longer-term buy-and-build strategy with Care Hospitals (acquired in 2023), which will include multiple tuck-in acquisitions; and Advent’s investment in Apollo Hospital Enterprise’s digital health platform, Apollo 24|7.
Meanwhile, in pharma services, investors have centered on contract development and manufacturing organizations (CDMOs), contract manufacturing organizations (CMOs), and generic API / pharma manufacturers.
Additionally, India has consistently delivered favorable returns and has enabled a range of successful exits for PE firms through initial public offerings (boosted by strong public markets), strategic acquisitions (bolstered by acquirers’ strong balance sheets), and sponsor-to-sponsor deals (such as KKR’s nearly $840 million acquisition of Healthium Medtech from Apax Funds).
Stay informed with the latest business news, updates on bank holidays and public holidays.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
A business journalist with around two decades of experience track...
Read MoreA business journalist with around two decades of experience tracking key consumer-focussed sectors like consumer durables, retail, consumer goods, aviation, automobiles and advertising, as well as economic ministries of the Union government. Now, writes primarily on pharmaceuticals and healthcare, and on issues of consumer interest. Besides also looks at trends that are shaping consumer behaviour and the broad consumer landscape. \nYou can follow Rupali on Twitter@Rupalijee.
Read Less
Start a Conversation
Post comment