Healthcare & Life Sciences
Rainbow Children’s Medicare raised private equity from CDC and The Abraaj Group
About
Rainbow
Rainbow Hospitals is India’s largest specialized paediatric and maternity care company with four maternity, paediatric and neonatal intensive care units and one outpatient clinic in Hyderabad. Rainbow was named “Best Children’s Hospital” by CNBC and ICICI Lombard in 2010 and was in the top-5 children’s hospitals in India named by The Week in 2012. Rainbow’s promoter and founder is Dr Ramesh Kancharla who worked at Kings’ College Hospital and Great Ormond Street in London before returning to Hyderabad to found Rainbow.
CDC
CDC is the UK government-owned development finance institution that uses its own balance sheet to invest in the developing countries of South Asia and Africa. It has net assets of £2.8bn. Under its recent business strategy, announced in September 2012, CDC provides debt and direct investment to businesses as well as acting as a fund-of-funds investor.
The Abraaj Group
Founded in 2002, The Abraaj Group is a leading investor operating in the growth markets of Asia, Africa, Latin America and the Middle East. Employing over 300 people, the Group has over 30 offices spread across 6 regional hubs. The Abraaj Group currently manages US$ 7.5 billion across 25 funds, across both private equity and real-estate.
Background
We are pleased to announce that our client Rainbow Children’s Medicare Private Limited (“Rainbow”) has received an investment of Rs. 100 Cr from CDC, the UK’s development finance institution and The Abraaj Group, in the largest private equity investment in paediatric and maternity care in India. This is CDC’s first direct equity investment in India since the launch of its new strategy in late 2012.
This investment will help Rainbow expand and develop its high-quality medical facilities, allowing the company to increase the number of beds available to patients from the current level of 400 to about 1,000.
Veda Corporate Advisors (“VedaCorp”) was the sole advisor to Rainbow and its promoters in the transaction. VedaCorp 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.