NewQuest Capital Partners, a private equity (PE) firm focused on emerging markets, has acquired a minority stake in maternity clinic Kids Clinic India Pvt Limited which operates Cloudnine chain of hospitals.
NewQuest has made its investment in Cloudnine from its fourth flagship fund, which closed in late 2019 with US$1 billion of commitments.
The investment in Cloudnine is NewQuest’s third investment in India in the last six months.
However, the deal size and the selling shareholders were not disclosed.
But existing investor Matrix Parnters has been looking to exit its shares since 2017.
True North also owns stake in Kids Clinic.
The deal is a mixture of primary investment and acquisition of shares from other investors.
Cloudnine is headquartered in Bengaluru with 16 facilities spread across Gurgaon, Noida, Chandigarh, Panchkula, Chennai, Mumbai and Pune.
“Cloudnine is an exceptional healthcare provider with a focus on providing high quality services in the women and childcare segment. We believe that the healthcare segment is on the cusp of high growth and Cloudnine is well positioned to consolidate its market leading position," Amit Gupta, partner and head of India and Southeast Asia at NewQuest, said.
Private equity firm TPG acquired a majority stake in New Quest earlier this year.
New Quest’s understanding of the healthcare sector and ability to provide long term strategic capital make them an ideal partner for Cloudnine, Rohit MA, co-founder and managing director at Cloudnine, said.
“We will be exploring strategic opportunities to build our capacity particularly in disruptive customer services and medical technologies to enhance the overall customer experience,” he added.
Kishore Kumar, founder chairman and neonatologist at Cloudnine said that New Quest investment would help the firm with technological advancement.
“Our partnership with NewQuest will strengthen our ability in providing highly specialised maternal, childcare and fertility care for our customers,” Raviganesh Venkataraman, CEO at Cloudnine, said.