Healthcare & Life Sciences
Aster DM Healthcare raised private equity from Olympus Capital Asia and India Value Fund
About
Aster DM Healthcare
Aster DM Healthcare is the largest healthcare service providers in the Gulf Cooperation Council countries, with a rapidly expanding presence in India. Established in 1987, the Company is promoted by Padma Sri. Dr. Azad Moopen.
Aster DM Healthcare owns and manages the ASTER and MEDCARE brands of hospitals, clinics and pharmacies in the UAE, Qatar, Oman, Saudi Arabia, Jordan and Philippines.
Aster DM Healthcare also has significant presence in Kerala & Maharashtra and plans to expand its presence in the Southern & Western regions of India. The hospitals owned by the Company in India includes Aster Medcity in Kochi, a large 1,000 beds quaternary care hospital complex which is currently operating its first phase of 540 beds, Malabar Institute of Medical Science (MIMS), one of the leading tertiary care hospitals in Kerala with around 800 beds, Aster Aadhar hospital, a leading secondary care hospital in Kolhapur, and Aster Medipoint hospital, one of the leading hospitals in Pune. It is also shortly commencing its first hospital in Bangalore.
Olympus Capital Holdings Asia
Olympus Capital Holdings Asia is a leading regional mid-market private equity firm focused on Asia. Founded in 1997, the firm has successfully invested approximately USD 1.5 billion on behalf of its funds and co-investors in over 35 portfolio companies throughout Asia, including India, China, Japan and South Korea.
With a team of experienced investment professionals and advisors located in Hong Kong, New Delhi, Shanghai, Seoul, Tokyo and New York, the firm seeks to leverage its regional platform to help its portfolio companies drive cross-border expansion, in addition to helping companies grow in their home markets.
Olympus is an international investment company backed by funds managed by Olympus Capital Holdings Asia.
India Value Fund Advisors
India Value Fund Advisors (“IVFA”) was established in 2000 and manages over USD 1.3 billion in assets across four funds.
IVFA’s investment strategy is to acquire majority / significant minority stakes in mid-size companies in India to build high growth and enduring businesses, which are admired by all stakeholders. An in-house business management team, with deep operating experience, supports IVFA’s unique value creation approach of partnering with portfolio companies to transform businesses. IVFA’s investments include a diverse range of industries such as healthcare, retailing, outsourced services, consumer products and services, media & entertainment and manufacturing.
Background
We are pleased to announce that Olympus Capital Asia Investments Ltd (“Olympus”) and India Value Fund Advisors (“IVFA”) have made an investment of USD 60 million for a minority stake in our client Aster DM Healthcare Private Limited (“Aster DM Healthcare”). The transaction is one of the largest private equity investments to be made in an Indian healthcare business in recent times. Aster DM Healthcare plans to list its shares in the public markets soon and this investment will help in consolidating its presence in India and the Middle East region through organic and inorganic expansion.
Veda Corporate Advisors (“VedaCorp”) was the exclusive advisor to Aster DM Healthcare & its promoters in the transaction.
With this transaction, VedaCorp has now advised Aster DM Healthcare on transactions cumulatively amounting to USD 210 million in value. VedaCorp had also advised the Company in its two earlier rounds of capital raising, from IVFA in 2008 and from Olympus in 2012.
VedaCorp successfully managed the transaction process by establishing firm offers from multiple marquee private equity investors. After receiving the best offer from the investors, the existing investors, Olympus and IVFA, offered to participate in the fundraise at the same terms. VedaCorp also provided comprehensive transaction advisory services covering strategic positioning, valuation and transaction structuring, assistance in due diligence, negotiation and finalization of definitive agreements, leading to the successful closure of the transaction.
With this transaction, VedaCorp has further strengthened its credentials in advising healthcare companies and also enhanced its knowledge in advising Indian companies with significant operations in the Middle East region.