With 26% of the deal volume, India has emerged as the largest private equity buyout in the healthcare sector in the Asia-Pacific region in 2024, said a report by the global private investment firm Bain and Capital.
The wider Asia-Pacific market, however, grapples with a decline in buyout activity, with regional volumes plummeting by nearly 49%. “India also appears more resilient to deal downturns than other countries in the region, with buyout volumes dipping only 18% from 2023, vs. a nearly 49% drop across Asia-Pacific overall”, said the report
This growth can be attributed to a combination of buoyant capital markets, strong economic fundamentals, and a burgeoning investor confidence, fuelled by successful private equity exits, such as Advent International’s $1.6 billion sale of BSV Group to Mankind Pharma.
“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,” the report added.
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Strong growth is projected to continue in India’s healthcare sector, with healthcare spending expected to reach $320 billion by 2028.
In India, over the past two years, investments have come in the provider and related services space and biopharma and related services, with a sharper focus on provider deals. In the provider space, investments have gravitated to hospitals, clinics, and supporting services.
The report highlighted that the India has consistently delivered favourable 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 $839 million acquisition of Healthium Medtech from Apax Funds).
“With a proven track record, favourable macroeconomic conditions, and a diverse healthcare landscape, India is expected to remain a prime investment location for PE firms,” the report added.
