KKR lends $600 million to Manipal Group in its largest credit investment

Private equity giant KKR & Co has provided $600 million in financing to the Manipal group, marking the American firm's largest private credit investment in India to date. The structured capital will back the Ranjan Pai-led group’s long-term growth and expansion strategy, the firms said in a joint statement on Monday.

 

The capital was arranged by KKR Capital Markets and is being anchored by the firm’s private credit and insurance platforms.

 

Founded in 1953 by T M A Pai, the Manipal group has grown into a diversified conglomerate, with a significant presence in healthcare, education, and health insurance across India and overseas. Its operations reach over 20 million people annually, with Manipal Hospitals, in which it owns 40 per cent stake, emerging as the largest tertiary healthcare network in the country.

 

The deal comes amid a broader surge in private credit activity in India, with global investors increasingly stepping into a space that traditional banks and non-banking financial companies (NBFCs) often struggle to serve. By offering flexible capital to both performing and stressed companies, private credit is helping bridge financing gaps while delivering superior risk-adjusted returns to investor. Last week, the Shapoorji Pallonji group raised India's largest private credit at $3.35 billion. The infrastructure conglomerate secured the funding by pledging a portion of its Tata Sons’ stake as collateral, attracting commitments from global investors, including BlackRock and Morgan Stanley.

 

India has emerged as one of the largest private debt markets in the Asia-Pacific (Apac) region, and is projected to account for up to 30 per cent of the region’s private credit fundraising by the end of 2025, according to a PwC report. “India is a priority market for our credit strategy, and we look to build on this momentum to be a partner of choice to more high-quality companies on their growth ambitions,” said Diane Raposio, partner, head of Asia Credit and Markets, KKR.

 

 

 

“This transaction underscores the strength of our global credit platform and our ability to provide strategic, and scaled capital solutions to leading businesses,” she added.

 

KKR is channelling the financing through its Asia Pacific Credit strategy and insurance platform. Since 2019, the firm has committed over $8 billion across approximately 60 credit deals in the region, representing a total transaction volume exceeding $21 billion, the company said.

 

“We are proud to welcome KKR as a strategic partner as we continue to build on Manipal’s legacy in healthcare and education. KKR’s longstanding India focus and flexible capital approach as well as alignment with our long-term vision present a strong fit for us,” said Ranjan Pai, chairman, Manipal Education and Medical group. The group did not specify where it would invest the proceeds of the debt.

 

Gaurav Trehan, co-head of KKR Asia Pacific and head of Asia Private Equity, KKR, said: “We are pleased to deepen our relationship with the Manipal group and Dr Ranjan Pai, who have established one of India’s pre-eminent and home-grown businesses as they continue to deliver on their long-term vision. The Manipal group has built a strong reputation over the decades as one of India’s healthcare and education leaders, and we look forward to supporting and contributing to their continued success.”