Kauvery raised Series C private equity funding from LGT Lightstone Aspada

Healthcare & Life Sciences

DATE September, 2019

TYPE Private Equity

Kauvery raised Series C private equity funding from LGT Lightstone Aspada

About

Kauvery Hospital

Established in 1999, Kauvery Hospital has established itself as a healthcare institution of repute within a short span of time. With presence in 5 cities in Tamil Nadu spanning Tier-1 and Tier-2 markets, Kauvery aims to make healthcare affordable. A patient centred approach and adherence to international service standards has helped it establish as an ethical healthcare group offering high quality services. It offers services in the areas of Cardiology, Orthopaedics, Gastroenterology, Nephrology, Trauma & Critical Care, Oncology and Neurosciences. The Group has several clinical breakthroughs to its credit in the areas of organ transplantation, complex heart surgeries, advanced neurosurgery and joint replacements.

LGT Group

LGT Group is the largest family-owned private banking and asset management group in the world. LGT, originally known as The Liechtenstein Global Trust, is owned by the princely House of Liechtenstein. LGT is headquartered in Vaduz, Liechtenstein with a key presence in Zurich, Switzerland.

LGT Lightstone Aspada is the impact investment arm of LGT Group that focuses on private equity investments in developing and emerging countries.

Background

We are pleased to announce that our client, Kauvery Hospital (“Kauvery”), a leading chain of multi-speciality hospitals in South India, has raised Series C funding from Lightstone fund (“LGT Lightstone Aspada”), a global investment company headquartered in Zurich. With 7 hospitals across Tamil Nadu, Kauvery delivers world class tertiary care services across Tier 1 and Tier 2 markets. Kauvery is promoted by first generation entrepreneurs, Dr S Chandrakumar and Dr S Manivannan.

Kauvery, the largest regional healthcare platform in Tamil Nadu, will use the capital to deepen its presence and expand into new cities in South while fortifying its position as a new age tertiary care player in the region. The proposed expansion would allow Kauvery to triple its bed capacity from the present 1,200 beds to more than 3,000 beds within the next 5 years with a capital deployment of INR 7,000+ Mn.

VedaCorp provided comprehensive transaction advisory services covering strategic positioning, identification of investors, negotiation and finalization of definitive agreements, leading to the successful closure of the transaction. VedaCorp was also the exclusive advisor to the Company in its previous round when IndiaVenture had exited and Serial entrepreneur Dr GSK Velu invested as Series B Investor. Dr GSK Velu continues to stay invested in the Company.

This marks VedaCorp’s 30th transaction in the healthcare domain with deal value totalling to over USD 1.4 Bn, 11th transaction in multi-speciality healthcare services, reaffirming our credentials as the premier healthcare investment bank in the country.

Despite sharp headwinds in the tertiary care segment leading to a consolidation phase with more M&A and control PE transactions, the Kauvery LGT transaction, a conventional growth capital with minority participation clearly stands out, bearing testimony to the company’s strong growth prospects and VedaCorp’s extensive market coverage.

“It was a pleasure working with Team VedaCorp for the second time. Their deep knowledge about the industry and rich experience helped us to navigate through difficult situations and close the deal.”

Dr S Chandrakumar & Dr S Manivannan

Executive Chairman & Managing Director

“Through an optimal mix of corporatisation and personalised clinical care, Kauvery reaches patients across the spectrum of age groups. Demonstrating success across markets, Kauvery has built a strong team of doctor professionals and management team. The investment by LGT Lightstone Aspada will help Kauvery consolidate its position as one of the strongest regional players in South India.”

Sivaraj Sekhar & V P Rajan

Veda Corporate Advisors