India’s healthcare sector remains a hotbed for private equity, accounting for 26% of the Asia-Pacific region’s total deal volume, which mopped up a combined $14 billion last year.
The world’s fifth-largest economy is emerging as an alternative dealmaking destination to China, thanks to rising demand for quality healthcare and strong economic growth, according to Bain & Co’s latest report. 
Source: Bain
India has shown greater resilience to deal with downturns than other countries in the region, with buyout volumes dropping just 18% from 2023, compared to nearly 49% across Asia-Pacific, per the Bain data. Its capital markets and expected 7% GDP growth in 2024 have also exceeded expectations.
Wall Street giants Morgan Stanley, KKR, and Blackstone are among the investors who helped India sweep up the largest share of deals in the region last year with their investments in medical centres and device companies. Exits via initial public offerings, strategic sales, and direct secondaries have also buoyed India’s buyout market.
Date Company Business Sponsor Deal value ($ millions)
May Healthium Medtech Medical device maker KKR 840
April Apollo 247 Online healthcare platform Advent International 300
July Baby Memorial Hospital Hospital group KKR 300
November Vee Healthtek Digital healthcare service provider TA Associates 250
July Inventia Healthcare Pharmaceutical development and manufacturing company Platinum 225
Source: Data compiled by DealStreetAsia
Advent International’s $1.6-billion sale of BSV Group to Mankind Pharma was one of the largest exits in India last year.
“In 2024, there were significant private transactions from both financial sponsors and strategics in the hospital space, driven mainly by the objective of building scaled platforms, which also led to M&As for consolidation,” said Sunil Thakur, partner at Quadria Capital in a recent interview.
India’s strong growth is projected to continue, with healthcare spending expected to reach $320 billion by 2028, Bain predicted in its report.
Thakur echoed a similar view after seeing significant inflow into the country and the entry of big investors driving the sector in 2024. “We expect this trend to continue this year as well,” he added.
Source: Bain
Japan, Korea gain traction
Japan and South Korea are also becoming key markets in the region, benefitting from similar trends as India where sizeable growth opportunities are coming out of.
Investments in Japan’s healthcare have grown at 20% annually since 2019, driven by improved corporate governance and changes to the M&A code, which have opened up more opportunities for carve-outs and privatisations, according to Bain.
Japan’s ageing population, which is fuelling demand for senior-care services, is luring fund managers much the same way as the market’s high returns are attracting more limited partners amid capital shifting away from China. J-STAR was among the dealmakers riding the tailwinds with the acquisition of Caregiver Japan (now Wako Garden), a nursing home and home-care provider, last year.
“Japan’s stable market, demographic trends, and opportunities for partnering with large conglomerates to accelerate value creation will continue to attract healthcare investments,” Bain predicted.
Meanwhile, South Korea’s share of regional deal value rose to 26% in 2024, up 8% from the previous year, thanks to its ageing population and the introduction of regulatory changes to attract foreign investment, especially in the medtech sector. These medtech companies typically focus on global markets, particularly in aesthetic skincare and dental health.
Archimed bought aesthetic device maker Jeisys Medical last year, while Blackstone exited pharmaceutical wholesaler Geo-Young to MBK Partners.
APAC’s private equity healthcare deal value recorded a roughly 21% compounded annual growth rate since 2016, Bain said. The region’s deal volume, however, has declined significantly since 2023, due to a slowdown in dealmaking in China, a shift in volume to India, Japan, and South Korea, and intensified competition from strategic buyers in the M&A markets.
