TA Associates, one of the oldest PE firms in the world, is set to increase its Indian portfolio by closing two healthcare deals soon. The firm, which manages $16 billion, is in advanced talks with two firms--in the healthcare services and pharma space---and the deals are expected to be closed in coming months, according to a senior official. According to sources in the know, the aggregate investment for two deals would be in the range of $100 million.
Naveen Wadhera (in pic), director, TA Associates, who also heads Indian operations, told VCCircle, “Healthcare, more broadly, is an area we are very bullish on and eager to participate in. We are today in discussions for advising on two healthcare investments and hoping to execute on both deals in the coming months. We are also keenly looking at a few transactions in the broader consumer services and logistics sectors." He refused to disclose the deal size and identity of the companies.
This year, TA Associates has invested $45 million (Rs 200 crore) in Gurgaon-based Micromax Informatics Ltd., which develops mobile phone solutions and wireless technologies. It has also invested in companies like Idea Cellular Ltd and GlobeOp Financial Services, a specialist BPO company. TA Associates last year closed its new $4-billion fund, TA XI, L.P. “In general, there is no urgency for the TA funds to put capital to work so we are happy to wait for the right targets,” Wadhera added.
Last month, VCCircle had reported TA Associates' plans to expand its Indian team appointing Dhiraj Poddar, a former director at Standard Chartered Private Equity as director at Mumbai office. TA Associates, founded in 1968, opened its India office 18 months back. The office currently has one director and two associates located in Mumbai. The India office is headed by Naveen Wadhera, who has been with the PE firm for nearly a decade.
So far, TA Associates, which has invested in 400 companies, invested in about 28 healthcare service firms globally such as Twin Med LLC, Quotient Bioscience Ltd, Youth and Family Centered Services, Inc. and American Access Care while 16 investments were made in healthcare technology companies such as Alma Lasers, Ltd, Cypress Pharmceutical Inc.
According to VCCEdge data, since 1996, 134 deals worth $2.5 billion took place in Indian healthcare& pharmaceuticals space. Till date in 2010, about 11 deals worth $337 million took place in healthcare& pharma space.