Dealflow | June 2, 2017

Toro Finance launches $500 million fund to expand healthcare facilities in India

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India’s healthcare sector is notoriously undersupplied.

The government is pushing for an additional $200 billion to get India to three hospital beds per 1,000 people by 2025. (It currently has less than one bed per 1,000 people.)

The fund from Toro, a private equity firm, aims to help healthcare providers expand facilities and open in new markets. “Institutional investments in healthcare infrastructure has been shy and selective around a few chains of private hospital so far,” notes Toro’s Kapil Khandelwal.

Toro’s fund will use sale-leasebacks to buy stable healthcare facilities. This will free up capital for operators to expand into new or underserved markets, Khandewal says.

Toro has raised $110 million of a planned $250 million, and will leverage the other $250 million.