PE Firm Quadria Capital to Invest $1 Bn in Indian Health Care

Quadria is raising funds for its third investment vehicle after securing $500 million last year. However, the total expected funds or its closing date were not disclosed.

Healthcare-focused private equity (PE) firm Quadria Capital Investment Management has planned to invest up to $1 billion in India over the next two-and-a-half years.

The PE Firm aims to acquire minority stakes in healthcare companies and potentially double its current investment in the country.

“We will evolve into more buyouts eventually, but currently we like backing entrepreneurs and working closely with them to help grow the companies,” said Sunil Thakur, a partner at the Singapore-based company.

Investment Strategy

Currently, Quadria manages $1 billion of assets in India, with about half of each prior fund deployed in the country. Globally, the firm manages approximately $3.4 billion in healthcare assets.

Quadria is raising funds for its third investment vehicle after securing $500 million last year. However, the total expected funds or its closing date were not disclosed.

Further, the second fund closed in 2020 with $595 million in investor capital.

Quadria typically invests between $75 million and $200 million in healthcare opportunities, taking minority stakes ranging from 15% to 45%.

The firm focuses on five broad themes: local manufacturing, outsourcing of products and services, consolidation, consumer healthcare, and digitalization.

Thakur also noted the potential for growth in ambulatory-care models and rehabilitation clinics in India, sectors that have yet to mature in the market.

He also pointed out opportunities for consolidation among mid-sized hospital operations with around 2,000 beds, despite the high valuations of larger hospitals.

Quadria's recent investments include NephroPlus Dialysis, a dialysis provider, and Maxvision Eye Hospitals, an eye-care chain. The firm is currently selling a 10% stake in Akums Drugs & Pharmaceuticals, a contract manufacturer while retaining a 5% interest.

In May this year, Quadria invested INR 850 Cr in NephroPlus, India's leading dialysis player.

This investment marks Quadria's acquisition of a significant minority stake in NephroPlus through a combination of primary investment and the purchase of shares from existing shareholders, according to the PE firm's official statement.

The transaction aimed at supporting Hyderabad-based NephroPlus in catering to the growing demand for high-quality and affordable dialysis services across India and other markets in Asia.