Global investment firm KKR and Healthcare Global Enterprises, a leading healthcare organization in India, announced the signing of definitive agreements with CVC, a global private markets manager. Under these agreements, funds managed by KKR will become the largest shareholder in HCG and assume sole control of HCG’s operations. Dr. BS Ajaikumar, founder of HCG, will take on the role of non-executive chairman and focus on driving clinical, academic, research, and development excellence.
As part of the deal, KKR will buy up to 54% of HCG’s equity from CVC Asia V for INR 445 per share. Pursuant to the Securities and Exchange Board of India’s (SEBI) regulations, KKR will conduct an open offer to buy additional equity shares in HCG from public shareholders. Upon completion of the deal, KKR is expected to hold an equity stake of between 54% and 77%.
Founded in 1989, HCG is one of India’s largest oncology hospital chains. It operates 25 medical care centers across 19 cities and has infrastructure that includes 2,500 beds, nearly 100 operating theaters, and 40 linear accelerator machines (LINACs).
KKR is making this investment from its Asia Fund IV. This transaction marks KKR’s latest investment in India’s healthcare space. Past investments in this sector have included Baby Memorial Hospital, which is a leading regional multi-specialty hospital chains in India; Healthium, a leading Indian medical devices company; Infinx, a tech-enabled healthcare revenue solutions provider; Max Healthcare, one of India’s largest hospital networks; JB, a leading branded formulations pharmaceutical company in India and Gland Pharma, a leading Indian pure-play generic injectable pharmaceutical products company.
The deal is expected to close by the third quarter of 2025, subject to customary closing conditions and regulatory approvals.
KEY QUOTES:
“HCG is a pioneer in cancer care in India and has established itself as an important healthcare provider in the country for the past three decades. As healthcare continues to be a thematic focus for KKR in India, our investment in HCG will support the development of medical infrastructure and the delivery of critical oncology services and care to more patients in the country. We look forward to leveraging KKR’s global healthcare expertise to strengthen HCG’s offerings and working with Dr. BS Jaikumar to further enhance HCG’s clinical excellence.”
- Akshay Tanna, Partner and Head of India Private Equity, KKR
“I want to thank CVC for their support through the years, helping the management to put HCG in the strong position it is in today. I am delighted to welcome KKR, with their investment and operational expertise in healthcare in India and globally, as a majority shareholder in HCG. Patient well-being and outcomes will always be a top priority for us at HCG, and in my new role as Non-Executive Chairman, I will focus on clinical aspects involving multi-disciplinary approach to cancer care, and research and development; and look forward to the journey of HCG where it continues to stay at the forefront of clinical excellence, research, and academics.”
- BS Ajaikumar, Founder, HCG
“We are proud to have supported HCG’s transformation at a critical juncture in time to build it into one of India’s leading healthcare organizations and the delivery of high-quality care to many patients over the years.”
- Amit Soni, Partner, CVC
“Our partnership with Dr. Ajaikumar and the management team is a testimony to the ability to combine clinical and professional acumen to increase the reach of cancer care in India. We thank Dr. Ajai and the management for their unparalleled support and commitment to a common vision.”
- Siddharth Patel, Managing Partner, CVC
