PE firm Advent International invests $105m in Care Hospital.

Private equity firm Advent International has picked up equity in hospital chain Care by investing $105 million. With this the healthcare services provider hopes to consolidate its position in the sector and bet big on the growth opportunities to set up more hospitals in Tier II locations.
“We believe that there is tremendous potential in the Indian healthcare market. Through this, Advent brings relevant global experience to support Care’s expansion plans in India as the hospital chain aspires to match the best international benchmarks in healthcare delivery,” said Georg Stratenwerth, managing director of Advent India PE Advisors.

For the undisclosed equity that Advent holds, it has acquired shares from some of the existing investors and injecting additional capital into the business. Post the investment, the management continues to be the same. The multi-specialty chain has presence in southern cities like Hyderabad, Vishakapatnam among others cities like Raipur, Bhubaneshwar, Nagpur and Pune.

“The partnership with Advent provides us with the required resources and support to expand our presence and reiterates our commitment in providing the best in healthcare” said Care Hospital founder B Soma Raju adding that the hospital had begun in 1997 with a 100-bed facility.

The hospital chain, which specialises in cardiac care, neurology, nephrology and general medicine, is said to be ranking 5th among all hospitals in the country in terms of number of beds and revenue. The group has a total of 1,590 beds across eleven hospitals.

Prior to Care, Advent had invested in CAMS, which is into providing of outsourced transaction processing for mutual funds and insurance along with Element-K, a corporate e-learning business acquired by SkillSoft. Advent International has globally invested in over 30 healthcare companies worldwide across a broad range of sub-sectors, including pharmaceuticals, healthcare services and medical equipment.