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The Future of VC/PE Investment in Health Care in India

The Future of VC/PE Investment in Health Care in India. Matt Eliot IFC Health & Education, South Asia CII 2 nd Evolving Healthcare Investment Landscape Conference Kolkata 21 June 2014. Indian Health Sector Attractive to Investors. High growth, with plenty of room for more

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The Future of VC/PE Investment in Health Care in India

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  1. The Future of VC/PE Investment in Health Care in India Matt Eliot IFC Health & Education, South Asia CII 2nd Evolving Healthcare Investment Landscape Conference Kolkata 21 June 2014

  2. Indian Health Sector Attractive to Investors • High growth, with plenty of room for more • Huge untapped potential • Rise of corporate care providers • Counter-cyclical - safe harbor • Timing mismatch Limited Deal Flow Over Past 24 Months Many in market, but few big deals closing Smaller deals are getting done; most activity 20-70 crores IPOs not happening Secondary opportunities as early round investors try to find exit Sector Trends Fragmented market, consolidation not happening High competition in major metros; under-served geographies present opportunity, but with big challenges Current Snapshot Access * Quality * Affordability - 2 -

  3. Deal Flow CY 12-13 up to USD 12 mm equivalent Access * Quality * Affordability - 3 -

  4. Source: WHO, via World Bank Data Bank Source: World Bank Data Bank Source: World Bank Data Bank Health Needs to be High on Government’s Agenda - 4 -

  5. GOVERNMENT HEALTH SYSTEMS • Shift from Provider to Payer? • Better environment for PPPs? • GSHIS: Broader? Deeper? Commercially viable rates? MACRO Stronger Economy, Opening of Infra Projects? Does SEBI easing jumpstart the overall IPO market? Will RBI ease the reins on ECB restrictions, boosting the debt market? Does private health insurance gain ground? HEALTH SECTOR DYNAMICS More health sector-specific funds Does consolidation come? Can single specialty chains achieve scale at good margins? eye, dental, birthing/M&C, oncology, dialysis Do nascent models gain traction? primary care clinics, day surgery, medtech Can shortages in health workforce be addressed? The Questions That Will Help Determine What Comes Next Access * Quality * Affordability - 5 -

  6. VALUATION RETURNS EXIT What It All Boils Down To - 6 -

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