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Private Equity

Bain Capital Invests $157 Million in Indonesia’s Mayapada Healthcare

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U.S.-based private investment firm Bain Capital has announced a $157 million investment in Indonesia’s Mayapada Healthcare Group, known as Sejahteraraya Anugrahjaya Tbk PT (SRAJ.JK). The deal, part of Bain Capital’s special situations strategy, will support Mayapada’s hospital expansion through both organic growth and strategic initiatives. The investment is Bain Capital’s first in Indonesia, reflecting growing interest in Southeast Asia’s healthcare sector. The firm’s special situations team, managing over $20 billion in assets, combines credit and equity strategies to target high-growth opportunities. Jonathan Tahir, Mayapada’s chairman and Group CEO, highlighted the demographic trends fueling the healthcare market: “Indonesia faces a growing gap between healthcare supply and demand due to demographic shifts like an aging population and rising affluence.” Sarit Chopra, Bain Capital’s partner and head of special situations in Asia, expressed confidence in Mayapada’s potential, noting that the Indonesian private healthcare market is still in its early stages of development. Founded in 2008, Mayapada Healthcare Group operates seven hospitals across Indonesia, including a flagship hospital in South Jakarta with over 1,000 beds. The group plans to increase its capacity to over 2,000 beds by 2027, supported by ongoing projects. Shares of Mayapada Healthcare have soared 747% year-to-date, signaling strong market optimism. The transaction is expected to close in early 2025, subject to regulatory and shareholder approvals. With this investment, Bain Capital taps into Southeast Asia’s rising affluence and aging population, positioning itself in a resilient sector amid global economic challenges. Source: Reuters Photo Credit: Reuters  

Hospitals Secure 50% Share in Healthcare FDI, Driving Sector Growth

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Foreign direct investment (FDI) in India’s healthcare sector has seen a significant shift, with hospitals now commanding 50% of the total FDI in FY24, amounting to $1.5 billion. This marks a substantial rise from 24% in FY21, signaling a growing investor preference for hospitals over the traditionally dominant pharmaceuticals sector. Post-Covid, hospitals and diagnostics have emerged as key areas for investment, driven by rising demand for quality healthcare, increased insurance coverage, and untapped potential in underserved regions. The surge has led to high-profile transactions such as Temasek’s $2 billion acquisition of an additional 41% stake in Manipal Hospitals, valuing the chain at $4.8 billion. “The Indian market’s size, high disease burden, and growing insurance penetration make it an attractive destination for investors,” said Sujay Shetty, Global Health Industries Advisory Leader, PwC India. “The hospital sector’s reinvestment in infrastructure further supports its robust growth trajectory.” Prominent hospital chains like Max Healthcare are spearheading expansion plans, with the group investing over ₹5,000 crore to double its capacity in the next three years. Abhay Soi, CMD of Max Healthcare, emphasized the capital-intensive nature of the sector and its critical role in achieving India’s $5 trillion economy target. Investor interest has also been buoyed by successful primary market transactions, including IPOs of six hospital chains, raising around ₹3,600 crore through IPOs and qualified institutional placements (QIPs). This influx of funds is expected to boost bed capacity among the 10 listed hospital firms by 47% over FY24-27, with expansions concentrated in north and south India, according to BNP Paribas analyst Tausif Shaikh. The momentum highlights a transformative era for India’s healthcare landscape, with hospitals at the forefront of FDI-driven growth, paving the way for enhanced healthcare access and infrastructure development nationwide. Source: Times of India Photo Credit: Times of India

India’s M&A Activity Surges 14% in 2024’s First Nine Months, Led by Major Transactions

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India’s mergers and acquisitions (M&A) market rebounded strongly in 2024, with transactions rising by 13.8% to reach $69.2 billion in the first nine months, up from $60.8 billion in the same period in 2023. A total of 2,301 deals were executed between January and September, marking a notable increase over the 1,855 deals recorded during the same time last year, as per Bloomberg data. Leading this surge was Bharti Airtel’s acquisition of a stake in the British telecom giant BT Group for $4.08 billion, marking the largest M&A transaction in India so far this year. Other major deals included a family settlement within the Godrej Group and Gujarat Gas’s $3 billion acquisition of Gujarat State Petronet. Bhavin Shah, Partner and Leader (Private Equity and Deals) at PwC India, attributes this uptick to India’s attractive growth potential and market resilience compared to developed regions such as North America and Europe. “High GDP growth and a strong stock market in India have driven valuations upward, appealing to both domestic and foreign investors,” he noted. Interest rate fluctuations and inflation have also influenced M&A activities, as shifting financing terms and equity stakes impact transaction structures and valuations. Additionally, variations in cross-border real exchange rates have shaped global dealmaking patterns. Vishal Agarwal, Partner at Grant Thornton Bharat, observed that investors are increasingly turning to the Middle East as it focuses on capital attraction, while Western investors appear cautious toward China. Meanwhile, India remains appealing, particularly for early-stage deals and full buyouts. Private equity has played a significant role in India’s M&A landscape, with PE funds involved in transactions totaling $24.2 billion so far, reflecting an 8.9% rise over the previous year. Investors are also increasingly eyeing IPOs for growth-stage deals, viewing them as more cost-effective than private equity funding. This sustained interest in the Indian market underscores its stability and potential as a global investment hub amid shifting economic dynamics. Source: Business Standard

M&A Surge Marks Economic Recovery as 2025 Promises Further Growth

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In a year marked by rising interest rates and a slowdown in initial public offerings (IPOs), mergers and acquisitions (M&As) have gained renewed momentum, signaling a robust recovery for 2025. According to Dealogic data, M&A deals in Brazil reached R$195 billion as of October 2024, a 56% increase compared to the same period last year, surpassing 2023’s total of R$117 billion. Notable transactions include Prio’s acquisition of the Peregrino and Pitangola oil fields, the sale of Santos Brasil’s controlling stake to France’s CMA CGM for R$6.3 billion, and Oi’s fiber broadband portfolio sold to V.tal for R$5.7 billion. The year’s largest deal so far was Auren’s acquisition of AES for $3 billion. Sectors like infrastructure and oil and gas have seen significant activity, with upcoming concessions expected to boost deal flow through year-end. Agribusiness is also contributing, as restructuring in the sector drives M&A opportunities. Anderson Brito, director at UBS BB Investment Bank, notes that private equity funds are increasingly active, while foreign investors are showing renewed interest in Brazilian acquisitions. “We’re seeing investors comfortable with Brazil’s risk,” he said. Meanwhile, Bank of America’s Diogo Aragão points out that many deals that stalled in 2023 are now moving forward, reflecting a rebound from a low base. Despite the increase in volume, activity is still below the peak years of 2021 and 2022. However, banks are optimistic about 2025, with stronger pipelines and a positive outlook, bolstered by U.S. interest rate cuts and Brazil’s credit rating upgrade. Key sectors driving M&A activity include consumer goods, retail, and infrastructure, with a strong performance expected in the first half of 2025. Source: valorinternational.globo.com

M&As in India Hit New Highs: Key Deals of Q2 2024

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India’s dealmaking activity reached new heights in Q2 2024, with 501 deals valued at $21.4 billion—the highest quarterly volume since Q2 2022, according to Grant Thornton Bharat Dealtracker. Mergers & Acquisitions (M&A) and Private Equity (PE) deals collectively stood at 467, valued at $14.9 billion, marking a 9% increase in volume but a 28% decrease in value compared to Q1 2024, due to the absence of mega-mergers like the Reliance-Disney deal. Key Highlights: Surge in High-Value Deals: The quarter saw 30 high-value transactions, a 58% increase from Q1 2024. Indian companies showed strong confidence in the domestic market, driving significant investment. Sector Leaders: Traditional sectors like pharmaceuticals and manufacturing were key contributors, accounting for nearly half of the total deal values. Domestic Deals Dominate: M&A saw 132 deals worth $6.2 billion, driven by four high-value deals from the Adani Group in the industrial materials and ports sectors, which made up 52% of the total M&A value. Cross-Border Decline: Cross-border deals saw a decline, with a 24% drop in volume and an 85% reduction in value compared to Q1 2024. Deal of the Quarter: Ambuja Cement’s $1.3 billion acquisition of Penna Cements was the standout deal, boosting Adani Cement’s market share by 2% across India. Sector-Specific Investments: Notable investments included those in EVs, industrial materials, pharma & biotech, energy & renewables, and defense. PE Landscape: Private Equity saw 335 deals worth $8.7 billion, with a 9% increase in volume and a 55% jump in value. High-value deals (≥ USD 100 million) dominated, reflecting a shift towards investments in companies with proven business models. Notable investments included Zepto ($665 million) and Lenskart ($200 million). QIP & IPO Trends: Q2 2024 recorded 20 QIPs totaling $2.3 billion and 14 IPOs valued at $4.2 billion, marking the highest quarterly IPO size since Q2 2022. Sector Trends: Retail & Consumer: Topped overall volumes but saw a marginal 7% decline in volumes. Pharma, Healthcare & Biotech: Led values with $3.8 billion across 53 deals, driven by ten high-value transactions. Manufacturing: Saw a significant rise with values increasing ninefold to $3.5 billion, mainly due to Adani Group’s high-value deals. Conclusion: M&A and PE activity in India are on an upward trajectory, fueled by domestic confidence and strategic sector investments, signaling a robust deal landscape ahead. Source: Business Standard

India Inc Registers 501 Deals Valued at $21.4 Billion in Q2 2024: Report

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India Inc has recorded a total of 501 deals valued at USD 21.4 billion in Q2 2024, according to Grant Thornton Bharat Dealtracker. As per the consultancy firm, Q2 2024 witnessed the highest quarterly volumes in two years, while values declined due to the absence of big-ticket M&A transactions. The merger and acquisition (M&A) and private equity (PE) deals taken together stood at 467, valued at USD 14.9 billion, reflecting a 9 percent increase in volumes but a 28 percent decrease in value, primarily due to the previous quarter’s USD 8.5 billion Reliance-Disney mega-merger, Grant Thornton said. The just-ended quarter featured a one-billion-dollar deal and 30 high-value deals (over USD 100 million), which translates to a 58 percent increase in high-value deals compared to the previous quarter. “Indian corporates are increasingly investing domestically, reflecting strong confidence in the local investment climate,” Grant Thornton said in a release. Despite declining cross-border deals due to geopolitical instability, traditional sectors grew in volumes over the previous quarter. “With recent election results and anticipated policy clarity from the upcoming budget, political stability is expected to boost investor confidence and drive deal activity in the next six months,” it said. Shanthi Vijetha, Partner, Growth at Grant Thornton Bharat, noted that the quarter witnessed robust private equity activity and large domestic deals. “Despite a decline in cross-border deals due to geopolitical uncertainties, domestic investment remained strong. Traditional sectors like pharma and manufacturing also saw strong deal flows, collectively contributing nearly half of the deal values,” Vijetha said. According to Vijetha, the industry anticipates policy continuity, which should positively drive the deal activity.

Despite Increased Transactions, M&A Activity Sees Sharp Decline in April

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According to a report by a consultancy firm, the overall merger and acquisition (M&A) activity by value witnessed a significant decline of 60% in April, totaling $5.192 billion compared to March’s $12.934 billion. Surprisingly, there was a 24% increase in the number of deals, totaling 176 transactions during the month. The decline in value was particularly notable in merger and acquisition transactions, which dropped by 75% to $2.526 billion, down from $10.212 billion in March. Private equity transactions, on the other hand, saw a marginal decrease to $2.666 billion. Within the M&A landscape, outbound deals experienced the sharpest decline, plummeting to $24 million compared to $9.072 billion in the previous month. The highest M&A activity of the month was attributed to the Adani group’s 8% stake increase in Ambuja Cement and ACC, amounting to a cumulative $1.8 billion in two transactions. Despite the dip in M&A activity, the outlook for 2024 remains positive, with India poised for growth and investment opportunities. Factors influencing the domestic markets in the near term include the outcome of the Lok Sabha elections and global and domestic trends in interest rates driven by inflation and supply chain dynamics. Overall, while the number of transactions increased, the decline in M&A activity by value underscores the complexities and challenges within the market landscape.