Singapore’s GIC buys more stake in Asia Healthcare, becomes majority stakeholder

Singaporean sovereign wealth fund GIC will plow an additional $150 million into Asia Healthcare Holdings (AHH) in a round that will make the former the biggest investor in the Bengaluru-based healthcare firm.

The investment follows its earlier investment of $170 million in the single specialty hospitals platform in February 2022, and ahead of a potential initial public offering (IPO).

AHH, which invests in and grows different single specialty healthcare companies under one enterprise, has pumped in as much as $300 million across hospital chains specializing in oncology, mother and childcare, urology and nephrology, and IVF and fertility under daycare specialties.

AHH’s portfolio includes Motherhood Hospitals, Nova IVF, and the Asian Institute of Nephrology and Urology (AINU).

The latest investment values AHH at about $900 million, Mint reported on Thursday, citing a person in the know.

“We started AHH as a healthcare delivery platform that would invest, transform and grow single specialty enterprises under one holding company,” Vishal Bali, executive chairman, AHH said in a statement, adding, “Over the years, our differentiated investment approach has since delivered strong growth opportunities to bridge the demand- supply gap of healthcare services in India.”

For GIC, the company sees opportunities for growth in India’s single-specialty healthcare sector driven by urbanization, rising incomes, and increased demand for quality care.

“Our additional investment reflects our confidence in AHH’s management team and the strength of its differentiated brands and diversified businesses. We look forward to deepening our partnership with Vishal and the AHH team in their mission to make quality healthcare more accessible and affordable in the market,” said Pankaj Sood, head of direct investments, India and Africa, private equity, GIC.

The latest investment makes GIC the majority stakeholder in AHH, while TPG, the health platform’s other key backer, will become a minority shareholder.

“Since TPG Growth first incubated AHH in 2016, we have stayed focused on our mission to take a differentiated approach to healthcare investing, which is to build and grow businesses that are adding value to the healthcare system that enable better outcomes for patients,” said Ankur Thadani, partner at TPG.

“We are proud to have supported AHH’s rise to market leadership, and in continuing our partnership with GIC, aim to support AHH as they further innovate and scale their platform across India,” Thadani said.