Quadria Capital Invests Rs 1,300 Cr in Maxivision Eye Hospital
- ByStartupStory | July 12, 2023
Quadria Capital, a leading private equity firm, has announced a significant investment of Rs 1,300 crore in Maxvision Eye Hospital, a prominent healthcare provider specializing in eye care services in South India. Amit Varma, Managing Partner at Quadria Capital Advisors, believes that the current environment presents a favorable opportunity for the firm to enter the healthcare sector.
Varma expressed confidence in the resilience and potential of the healthcare industry, particularly in the aftermath of the COVID-19 pandemic. He stated, “Healthcare, especially post-COVID, has proven to be a resilient sector that people can rely on. It has become evident that our existing infrastructure is insufficient to cater to the needs of all patients. We believe that now is the right time to strategically invest private capital to enhance the healthcare capabilities in our country.”
In terms of valuation, Varma acknowledged the inherent expensiveness of the healthcare sector in India and Asia due to the scarcity of high-quality investable assets. He emphasized that the current momentum is conducive for Quadria Capital’s entry into healthcare.
Several notable private equity deals have recently taken place in the eye care sector, such as Dr. Agarwal’s Healthcare raising Rs 1,050 crore from TPG and Temasek, and ASG Eye Hospitals securing an investment of Rs 1,500 crore from General Atlantic and Kedaara Capital.
Varma anticipates a wave of cashing out in the industry over the next two to three years, but believes it would be premature at this stage. He stressed the importance of scale and size, emphasizing the need for organizations to have a certain level of magnitude and reach in order to effectively address the challenges faced in the healthcare landscape.
Looking ahead, Varma projects a bright future for the healthcare industry, forecasting a year-on-year growth rate of 15 percent. Despite the immense potential of the sector, he highlighted that the organized market has only tapped into approximately 10 percent of its true potential, indicating significant untapped opportunities within healthcare.
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