Tata Capital Healthcare Fund II currently planning for third fund

Tata Capital Healthcare Fund II (TCHF), which has deployed 90 per cent of its $130 mn fund corpus, is currently firming up its plans for Fund III.

 

In 2023-24, TCHF II investments delivered 1.7 million direct health beneficiaries, 41 new jobs for every $1 million invested.

 

Speaking to Business Standard, Visalakshi Chandramouli, managing partner, Tata Capital Healthcare Fund II said, “TCHF II has committed around 90 per cent of its Fund II and is currently firming up its plans for Fund III. Meanwhile, TCHF along with co-investors is continuing to build its investment pipeline and is actively scouting opportunities across its core sub-segments of healthcare delivery, pharmaceuticals, and medical devices.”

 

 

She added that TCHF I has successfully exited seven investments namely Sai Lifesciences, Shriji Polymers, Intas Biopharmaceuticals, Konverge Healthcare, Lokmanya Hospitals, Amanta Healthcare and Sparsh Nephrocare.

 

On an average the fund has made 2-2.5x returns on their investment.

 

TCHF has raised over $200 million across the two fund vintages – TCHF I (2012) and TCHF II (2022).

 

The fund is sponsored by Tata Capital Limited, a subsidiary of Tata Sons Limited. Across both the funds, TCHF I and TCHF II have invested in 18 companies and have successfully exited seven companies so far.

 

Tata Capital Healthcare Fund II has so far invested in 9 companies, including Linux Laboratories, Sakar Healthcare, Orbicular Pharmaceuticals Technologies, Atulaya Healthcare, Anderson Diagnostics, Deeptek, Apex Kidney Care, Mumbai Oncocare Centre, and Noble Plus Pharmacy and Skin Care.

 

Chandramouli said that TCHF II continues to be a catalyst for meaningful change, addressing India's critical healthcare needs. She added that on average, the fund is looking for investments which will make a social impact by addressing any unmet need in disease areas, or in terms of technological solutions. For example, TCHF II-invested companies like Apex Kidney Care and Anderson Diagnostics are working in public-private-partnership projects in several states as they work in areas of dialysis service providers and diagnostics.

 

TCHF has also invested in contract development and manufacturing organisations (CDMOs) or pharma companies focussed on specialty products, or those who are focussing on emerging market exports.

 

In 2023-24, TCHF II investments have created 1.7 million direct health beneficiaries, which is an 18 per cent year-on-year (Y-o-Y) growth, besides creating 41 new jobs for every $1 million invested. Chandramouli said that the target was to create 26 new jobs for every $1 million invested.

 

Around 6,350 employees work across 9 Fund II portfolio companies, and there has been a 30 per cent Y-o-Y increase in women employees. Currently, women employed account for 27 per cent of TCHF portfolio workforce.

 

In FY24, TCHF portfolio companies operated a total of 300 healthcare facilities, and delivered over 160 million product and services volumes addressing the need gap in the healthcare sector today.