India Leads Asia-Pacific in Healthcare Buyouts Amid Regional Downturn

India has emerged as the leading hub for private equity buyouts in the healthcare sector within the Asia-Pacific region in 2024, despite a significant decline in regional activities. With resilient market dynamics and strong investor confidence, India's healthcare sector is poised for substantial growth and continued investment interest.

In a landmark development, India has claimed the top spot as the largest private equity buyout market in the healthcare sector within the Asia-Pacific region for 2024, according to a recent report by the global private investment firm Bain and Capital. While the wider region faces a 49 percent decline in buyout activities, India stands resilient with a mere 18 percent dip reported from 2023.

The report attributes India's notable performance to robust economic fundamentals, buoyant capital markets, and growing investor confidence, particularly following successful private equity exits. Noteworthy among these was the USD 1.6 billion sale of BSV Group by Advent International to Mankind Pharma, which underscored the viability of India's buyout market.

Furthermore, the healthcare sector in India is projected to continue its strong growth trajectory, with spending expected to reach USD 320 billion by 2028. Key investment areas include provider spaces, such as hospitals and clinics, and related services. The consistent delivery of favorable returns and the successful exits through IPOs, strategic acquisitions, and sponsor-to-sponsor deals make India an attractive destination for future investment.

(With inputs from agencies.)