Education, health pull in PEs despite slump

Education, healthcare sectors continue to attract private equity (PE) investments despite the economic slowdown.

According to PE players, the country’s education sector is a $40 billion opportunity for investors, with schools and colleges capable of attracting around $28 billion investments.

The PEs were talking at the two-day, Asian Venture Capital Journal Forum in Mumbai. “If there is a lot of hype on the education sector being a viable option for PE players, it might push the valuations of the deals up,” said Kartik Parija, managing director, Zephyr Peacock India.

In the healthcare segment, the challenge for domestic pharmaceutical companies will be to innovate. “The domestic industry is growing at 10 per cent. It’s a $7.5 billion market and will grow to $20 billion by 2015. But innovation needs to be addressed,” said Nitin Deshmukh, CEO-Private Equity, Kotak Investment Advisors.