Tata Capital Healthcare Fund II receives commitments worth Rs 955 cr

This is a follow-up to the Tata Capital Healthcare Fund I, which had raised Rs 411 crore in 2012

Tata Capital has closed its second healthcare fund with investor commitments to the tune of Rs 955 crore ($126 million), meeting its target AUM of Rs 950 crore, excluding green-shoe. This is a follow-up to the Tata Capital Healthcare Fund I, which had raised Rs 411 crore ($70 million) in 2012.

Tata Capital Healthcare Fund II (TCHF II) has received commitments from domestic and international financial and strategic institutions, including some of the global pharma, medical equipment companies, development financial institutions and large European institutions indicating their support for the TCHF investment strategy.

The fund has also received a commitment from the ‘Self Reliant India (SRI)’ Fund of the Indian government.

Visalakshi Chandramouli, managing partner of TCHF, said: “TCHF II will seek to achieve returns by principally taking equity positions in healthcare and life sciences related companies having significant business exposure to India.”

According to the fund, 60 per cent of the corpus will be focussed on consumer companies in the healthcare and life sciences, 40 per cent will be geared towards investments in products and services that cater to the global markets.

Vamesh Chovatia, Partner of TCHF said: “We are seeking to invest across sub-sectors of pharmaceuticals, pharma & allied Services, healthcare delivery, medical devices and equipment and digital health. The fund has already made commitments to three companies in the areas of Domestic Pharma Formulations – Linux Pharma; Diagnostic Services- Atulaya Healthcare and Digital Health.”

The Fund has a rich pipeline of deals and is expected to continue its deal momentum in the coming months. The Fund will typically look at committing $5 million-$15 million per transaction and potentially a larger ticket size along with co-investment support from its Limited Partners who have committed to invest in the Fund,” he added.

The $190-billion Indian healthcare and life sciences market is estimated to grow at a compounded annual growth rate (CAGR) of 14 per cent over the next five years and it represents an attractive investment opportunity, the company said.