India Healthcare Opportunities Fund (IHOF) as SEBI Alternative Investment Fund under Category 2 is being launched by Toro Finserv LLP. This fund is being launched by Kapil Khandelwal, an investment and healthcare industry veteran, who is the Managing Partner of the Fund. The total fund corpus will be USD 500 million (corpus of USD 250 million with additional leverage of USD 250 million).
The fund will invest into stabilised healthcare real estate providing sticky long term leases from stabilized assets such as hospitals, diagnostic centers, rehab facilities and assisted living facilities with established healthcare operators in Tier I & Tier II cities in India.
Outlining the investment opportunity, Kapil Khandelwal, Managing Partner of Toro Finserv, outlines, “Total value of healthcare real estate already built is of over USD120 billion with less than 5 – 7% operating under asset light model. Further USD 200+ billion is expected to be spent on development of healthcare infrastructure for India to come to the international norms in terms of real estate to get to Indian Government’s target of 3 beds per 1,000 people by 2025. Our fund expects to create and invest in healthcare infrastructure where institutional investments in healthcare infrastructure has been shy and selective around a few chains of private hospital so far. Indirectly, we are also creating social impact through raising the supply of scarce healthcare infrastructure in our country”
The IHOF – has an experienced management team with in-depth understanding of healthcare & real estate leveraging strong track record in the healthcare and real estate investment and asset management in India and globally. Adds Khandelwal, “our team has worked on over USD 42 billion of real estate transactions and USD 2 billion of healthcare transactions globally.”
The fund has commitments of USD 110 million from some State Governments in India, UHNIs, Fund of Funds from abroad. It is expected to start its formal road show in India and abroad in June-July 2017. The fund is in discussions with various banks and financial institutions for lease rental discounting (LRD) and leverage and distribution of the fund.
The fund is currently evaluating deals worth USD 200 million in Indian hospital chains, assisted living and diagnostic centers to issue term sheets.