Mumbai: Leading private equity fund True North will invest $200 million in Kerala Institute of Medical Sciences (KIMS), a company statement said.
True North (formerly India Value Fund Advisors) will buy about 40% stake in KIMS held by existing investors—Ascent Capital Advisors India Pvt. Ltd & OrbiMed Advisors Llc—and do a primary capital infusion to fund its growth plans across India and the Middle East.
Dr. M. I. Sahadulla, chairman of the KIMS Group, and his management team, with a board majority, will continue to run the company both in India and the Middle East, said the company statement.
Private equity fund True North is close to buying a controlling stake in Kerala Institute of Medical Sciences (KIMS), a hospital chain operating in Kerala and the Middle East, Mint reported in January.
True North became the sole contender after a consortium of global private equity funds TPG Capital L.P. and Temasek Holdings Pte. Ltd dropped out of talks, a 26 January Mint report said.
“We believe that private equity has a key role in funding Indian healthcare services to address the sector’s supply-demand gap. True North has played an active part by investing in the sector and it continues to be a key focus area for us. We have had the opportunity to evaluate numerous organizations in this space and have made nine investments across our different funds,” said Satish Chander, managing director of True North.
KIMS, founded in 2002 by Sahadulla and founding promoters, has over 1,500 beds across six hospitals. KIMS’s first and largest hospital in Thiruvananthapuram is a 650-bed multi-specialty quaternary care hospital.
The group has a presence in the Middle East across five countries, with two hospitals and six medical centres, as well as one managed hospital. The group’s combined turnover is in excess of Rs1,100 crore.
In India, there are a very few healthcare brands which combine clinical excellence and medical ethics,” said Vishal Nevatia, managing partner, True North. Medical excellence, right founder, a good brand with ability to attract doctors should be the criteria for investments in Indian hospital space, he added.
