TPG Growth Invests $33 Million in Rhea Healthcare
Mother and Child Care Network to Partner with Experienced Healthcare Investor TPG Growth
Fort Worth, Texas; San Francisco; and Bengaluru — July 19, 2016 — TPG Growth, the $7B growth equity investment platform of TPG, today announced a $33M investment for a significant majority stake in Rhea Healthcare Pvt. Ltd (“Rhea Healthcare”). Bengaluru-based Rhea Healthcare operates a network of mother and child care centers in India under the “Motherhood” brand.
“This latest investment reinforces our sector focus on healthcare in India and globally,” said Puneet Bhatia, Managing Director and Country Head for TPG in India. “Through TPG’s Growth, Capital, Asia, and Biotech platforms, the firm has invested more than $10B in healthcare companies around the world.”
“In our work across the healthcare space globally, we’ve identified specialty care networks as an area where there is significant opportunity, especially in emerging markets where patients are just now starting to demand skilled specialists,” said Matthew Hobart, Partner at TPG Growth who leads the fund’s healthcare investments.
Quality centers that offer specialized birthing and neonatal care are currently limited in India, but are increasingly in demand. As India’s middle class grows, mothers are seeking out exclusive care centers that offer a combination of clinical expertise and personalized attention for them and their child. Motherhood has built a network that offers state-of-the-art technology, including high-end neonatal intensive care units, and a dedicated team of highly experienced gynecologists, neonatologists, and pediatricians. The network’s leader, Dr. Mohammed Rehan Sayeed, was trained at the Cleveland Clinic, a leading U.S. non-profit academic medical center.
“Motherhood was built to provide specialty care in the mother and child segment, as the current generation of first-time parents are increasingly looking for a safer and more comfortable birthing experience,” said Dr. Rehan. “We look forward to partnering with TPG Growth to expand our footprint across India and enhance the treatment options we offer patients.”
Vish Narain, Partner at TPG Growth in India, added, “Motherhood is an early entrant in a space that we believe is prime for growth. The company has already built an impactful network and, working together, we can increase the availability of high-quality gynecological and neonatal care across the country.”
TPG Growth’s investment in Motherhood is the latest in a series of healthcare investments the fund has made in India and the region. In April 2016, TPG Growth invested in Cancer Treatment Services International (CTSI), a network of single-specialty facilities across India; and in December 2015, TPG Growth invested in Asiri Healthcare, Sri Lanka’s leading hospital and diagnostics chain. TPG Growth invested in Sutures India in 2013 and helped the company grow from a single-product domestic manufacturer to a global medical consumables platform that exports to more than 90 countries. Including Motherhood, TPG Growth’s investments in healthcare companies across India and Sri Lanka now total nearly $250M.
“On the heels of TPG Growth’s partnership with CTSI, this investment in Motherhood continues the firm’s momentum in India’s healthcare market,” added Vishal Bali, Senior Healthcare Advisor for TPG Growth in India. “Motherhood exemplifies an inflection point, where consumer demand is shaping new models of healthcare delivery in India. We look forward to partnering with the company and its talented team and to leveraging learnings from TPG’s previous investments across the region.”
By partnering with TPG Growth, Motherhood will gain access to TPG’s global network of healthcare experts. Examples of other TPG investments have included companies like U.S.-based outpatient surgical care company Surgical Care Affiliates, China-operated private care network Chindex, medical benefits manager EnvisionRX, healthcare services company IASIS Healthcare, Indian hospital platform Manipal Hospitals, drug maker Par Pharmaceutical, and Singapore hospital network Parkway.
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