Global Technology Investment Group (GTI), a New York based private investment firm, has set up a wholly-owned subsidiary to invest Rs 250 crore into Indian healthcare sector, reports Economic Times. The subsidiary is named India Management Company and will acquire up to 10% in healthcare service firms. The firm will provide technical know-how to healthcare and medical services firms in its portfolio. It also plans to charge a license fee of 2% on the gross revenue of its partner companies.
GTI Group has already received approval from Foreign Investment Promotion Board (FIPB). GTI has a stage agnostic approach and looks at early stage venture, growth equity and middle market buyout deals. GTI was started in 1996 by former Sony President and CEO Michael P. Schulhof. GTI has earlier picked up in aircraft maintenance firm Air Works along with construction firm Punj Lloyd.
Healthcare Investment Firms On The Rise
Private equity funds are increasingly looking at investment in the healthcare space due to its non-cyclical nature. Several private equity backed healthcare firms have been formed in India and are looking to buy and build medical facilities. Recently, private equity fund Sabre Capital Worldwide set up Spring Healthcare to invest primarily in hospitals and pathology labs.
Another such active firm is Iven medicare, which has been set by ICICI Venture, with a corpus of $250 million to invest.
There are also several special purpose acquisition companies (SPACs) active in this space. Mumbai-based YEN Healthcare Advisors is looking to invest out of a $80 million SPAC.