UAE's Abraaj Group buys majority stake in Care Hospitals

Dubai-based Abraaj Group, a leading investor operating in global growth markets, has agreed to acquire, through one of its funds, a majority stake in Quality Care India Limited, which owns and manages multi-specialty Care Hospitals, from global private equity firm Advent International. Hyderabad-headquartered Care is the fifth largest healthcare provider in India, operating 2,600 beds across 16 hospitals in nine cities.
 
Founded in 1997 by Dr B Soma Raju and a core group of professionals, Care Hospitals is today recognised for its focus on high quality tertiary care, including cardiac care and neurosciences.
 
Abraaj and Care Hospitals’ management team will focus on expanding Care’s integrated healthcare delivery system, especially in the underpenetrated regions of India. The partnership will also bring Care’s high quality and proven delivery platform to other markets where Abraaj operates. The Care Foundation, the company’s education, training and rural community outreach program, will also be scaled up and expanded to develop and train high calibre nurses, technicians, physiotherapists and community health workers.
   
Sev Vettivetpillai, partner and global head of Abraaj’s Thematic Funds Business, said, “The implications of the healthcare gap in India are profound, but they translate into a long-term opportunity for Abraaj to help build a better and more sustainable healthcare infrastructure in the country. Led by dedicated founders and a strong management team, CARE has been a pioneer in providing quality healthcare to middle and low income patients in India, and has the potential for further expansion domestically and internationally.”
 
Dr B Soma Raju, founder of Care, said, “We are confident that Abraaj with its track record, healthcare expertise and strong relationships with leading strategic partners and development finance institutions, will enhance our service offerings. These relationships will play a key role in enhancing public-private partnerships that are essential to the development of sustainable healthcare systems in India.”
 
The Abraaj Group has a strong track record of investing in healthcare, having deployed nearly $ 1 billion globally in 27 investments across the healthcare spectrum in growth markets.