Somerset Indus Capital Partners > Investment philosophy

The India Story

With India being a phenomenal growth story, a home to world’s largest and youngest population, it continues to strive for globalization, efficiency, socio-economic reforms and still battles the ever-perpetual healthcare challenges of affordability and accessibility.

Increasing affluence, a shift in disease patterns from communicable diseases to lifestyle-related diseases and growing dependence on India by the world have increased the demand-supply gap further, but at the same time has provided a huge opportunity to the overall healthcare segment.

Somerset Indus believes in playing its part in the growing need of private capital to overcome these challenges and have a positive impact on society and the lives of people.

The Growth Capital Story

Somerset Indus expects to make controlling or influential minority investments of approximately $7 to $10 million each (in cases can go up to $12-$15 million, plus co-investments) in Indian healthcare companies.

Historically, for Indian PE investments, the average deal size has been below $15 million, but with the advent of global private equity funds, the average deal size has been increasing, and increasingly, capital is seen chasing larger deals. Somerset Indus’s strategy is to target investments in the $7 to 15 million range where the need for capital remains significant, and where capital can be deployed most productively. Although, buy-outs may gain favor in the longer term, India will continue to be a growth market, and Somerset Indus will concentrate on growth equity investments in its sectors of focus.

As the PE market matures, and access to capital ceases to be a significant issue, Indian companies will value PE investors for their sector knowledge, operating expertise and ability to provide access to global markets. Somerset Indus focuses on the healthcare sector where its investment professionals have extensive knowledge, relationships with domestic players, and access to and experience dealing with global participants that can bring new technologies and provide access to new markets. Somerset Indus engages with its portfolio companies extensively in areas of portfolio expansion, talent acquisition and strategy and operational aspects.

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