In April, when Multiples Equity founder Renuka Ramnath said she was hitting the road to raise a new $1 billion fund, it was time for reflection. The private equity firm, arguably at its gilded peak, is raising its third fund in eight years, each progressively bigger than the last. Now, as the $405 million first fund nears its end—most private equity funds have eight-year terms—one investment stands out. Its $31 million bet on Vikram Hospitals.
Pass the Parcel
Multiples Equity’s bets in healthcare: The dog that didn’t bark
Hospital deals have been swift and steady, yet Multiples stopped at just one despite its founder Renuka Ramnath truly believing in healthcare. After all, she came from ICICI Ventures. As her first fund nears its end, is an exit on the cards? If not, what does it tell us about healthcare
One of the 11 investments from Multiples, nearly 8-10% of its first fund, was in Vikram Hospital. Yet the PE stopped at that, switching to pharma in its second fund and completely passing up hospitals. Why?
Hospitals deal flow has been steady in India, yet Multiples, after giving some confidential feelers for an exit, hasn’t gone too far with its investment
Are single hospital assets inherently bad investments or are sector agnostic funds constrained to understand and manage hospital assets? Sequoia in Moolchand hasn't done well either
Healthcare is not like quick service restaurants. And driving out the promoter certainly isn't a good idea in a business that requires a human touch