Why Private Equity Funds in India & Singapore Piling into Healthcare Sector?

During the late 1980s and 1990s, the private equity firms typically avoided investments in health care services because the operating environment and its related models appeared more complex than in other industries or sectors. Many health care provider services such as acute care hospitals, skilled nursing, ambulatory surgery centers, home care, have regulatory and reimbursements risk profiles that discouraged investors of Private Equity in India.

However, today Equity Funds in India are increasingly important participants in the healthcare services sector. Among those participants, is the leading Quadria Capital who have spent billions of dollars and investing in young, unfamiliar companies pursuing innovative strategies in health care services.

Quadria Capital, the independent healthcare-focused private equity firms are investing sizeable amounts of financial and human capital in health care services companies because they believe that they can achieve attractive returns during both up and down economic cycles and they can fill a consistent need for capital over time in health sectors.

The ultimate impact of private equity investments on health care services delivery is reshaping by introducing new, aggressive competitors in certain sub-sectors and service areas. Now, the innovations created through private equity could challenge established health services organization. Consequently, private equity has become a major factor in many segments of health care services.

If we talk more about the Quadria Capital, the institutional investors are investing heavily not only in India but also in Private Equity Funds in Singapore and are putting more of their money into funds by buyout firms. Now, the buyout firms have started to focus more resources on health care and are actively seeking more opportunities with an increased focus on health care services.