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Healthcare to attract USD 500 mn PE funding in 3 yrs

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The country’s healthcare segment is likely to attract private equity funding to the tune of USD 500 million in the next three years. According to industry estimates, over the next three years the healthcare services segment will attract PE funding worth about USD 500 million. PE investments in healthcare are focused on three key segments – hospitals, pharmaceutical companies and more recently the emerging healthcare services segment. The healthcare services include diagnostic chains, medical device manufactures, disease management services and allied healthcare services, which are increasingly attracting investments from a variety of venture capitalists. Though in recent times PE funding preferred retail, infrastructure, financial services, now most fund managers believe that the returns on investment earned in the past would not be possible going forward. At the same time, healthcare sector has a recession- averse trait. This status would ensure that healthcare sector remains robust and continue to attract increasing attention from PEs. Indian healthcare sector, which is at a nascent stage, is finally shedding the image of a stagnant, perfunctory sector and the enormous unmet demand within the industry has ensured a business opportunity for everyone. PE fund infusion would bring fiscal discipline in the healthcare sector. Besides, it would also lead to the consolidation of the un-organised healthcare market.

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