KKR provides $600 mn financing to Manipal Group to fuel its corporate expansion
Global investment firm KKR announced on Tuesday that it would finance the Manipal Group with $600 million, making this the firm's largest credit investment in India.
The investment, arranged by KKR Capital Markets and anchored by KKR's private credit and insurance platform, will enable the Manipal Education and Medical Group (or the Manipal Group) to accelerate its corporate expansion and growth objectives by providing flexible, structured capital matched to its long-term strategic needs, the two entities said in a statement.
'KKR's longstanding India focus and flexible capital approach, as well as alignment with our long-term vision, present a strong fit for us,' Dr. Ranjan Pai, chairman of the Manipal Group, said in the statement.
'The Manipal Group has built a strong reputation over the decades as one of India's healthcare and education leaders, and we look forward to supporting and contributing to their continued success,' added Gaurav Trehan, co-head of KKR Asia Pacific and head of Asia Private Equity at KKR.
KKR is making this investment from its Asia Pacific Credit strategy and insurance platform. Since 2019, it has committed more than $8 billion across about 60 credit investments under the Asia Pacific Credit strategy platform, accounting for a total transaction volume of over $21 billion.
Additional details of the transaction were not disclosed.
KKR's Asia Pacific Credit platform seeks to provide bespoke solutions to high-quality companies, entrepreneurs, promoters, and sponsors, among other private credit strategies. These solutions harness the strength of KKR's private markets investment capabilities and expertise as one of the largest alternative credit managers globally.
'This transaction underscores the strength of our global credit platform and our ability to provide strategic, scaled capital solutions to leading businesses,' Diane Raposio, partner and head of Asia credit and markets at KKR, said.
'India is a priority market for our credit strategy, and we look to build on this momentum to be a partner of choice to more high-quality companies like Manipal on their growth ambitions,' Raposio added.
The Manipal Group is a leading conglomerate in India with various institutions and major businesses, including Manipal Health Enterprises, one of the country's top multispecialty hospital chains, across the healthcare, education, and health insurance sectors.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
a day ago
- Economic Times
Fourth Partner Energy Appoints Shujath Bin Ali as Chief Legal Officer to head Legal and Compliance
Synopsis Fourth Partner Energy, backed by TPG and Norfund, has appointed Shujath Bin Ali as its Chief Legal Officer. He will spearhead the company's legal, compliance, and governance initiatives. This appointment occurs as India experiences significant expansion and investment in the renewable energy sector, aiming for 500 GW of renewable capacity by 2030. Private equity major TPG and Norwegian investment fund Norfund-backed renewable energy developer Fourth Partner Energy has appointed Shujath Bin Ali as its Chief Legal Officer to lead the company's legal, compliance, and governance initiatives. ADVERTISEMENT The Hyderabad-headquartered Fourth Partner Energy also counts IFC, a member of the World Bank Group, the Asian Development Bank and Germany's impact fund DEG, among its investors. An alumnus of Osmania University and also a member of the Institute of Company Secretaries of India (ICSI), Shujath Bin Ali started his career with Valtech in 2003. In March 2004, he joined Fanuc India Pvt Ltd and subsequently joined Deloitte, where he rose to become Associate Vice President, Head of Legal and Company Secretary. He has also worked with International Paper India and PAREXEL International – India as Senior Director, General Counsel, Compliance Officer & Company Secretary. Before joining Fourth Partner Energy, Shujath Bin Ali also served as Global General Counsel & Chief Compliance Officer at KKR-backed company Re Sustainability.'Shujath is a subject matter expert and dynamic industry leader. He is open to innovative ideas and always thinks outside the box,' said a senior executive who has worked with him. 'He is a complete team player, and be it with his superiors, colleagues or his team members, they speak highly about him,' he development comes at a time when India is witnessing heavy expansion and investment in the sector. The country has logged a threefold growth in its renewable power capacity in the last decade, with the installed green energy capacity reaching GW, including large hydro plants, compared to 75.52 GW capacity in March 2014, according to certain media reports. ADVERTISEMENT India has set an ambitious target of having 500 GW of renewable energy capacity by 2030, which requires the addition of about 50 GW of green capacity per annum in the next five to six years, suggests the reports. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online. NEXT STORY
Time of India
a day ago
- Time of India
Fourth Partner Energy Appoints Shujath Bin Ali as Chief Legal Officer to head Legal and Compliance
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Private equity major TPG and Norwegian investment fund Norfund-backed renewable energy developer Fourth Partner Energy has appointed Shujath Bin Ali as its Chief Legal Officer to lead the company's legal, compliance, and governance Hyderabad-headquartered Fourth Partner Energy also counts IFC, a member of the World Bank Group, the Asian Development Bank and Germany's impact fund DEG, among its alumnus of Osmania University and also a member of the Institute of Company Secretaries of India (ICSI), Shujath Bin Ali started his career with Valtech in 2003. In March 2004, he joined Fanuc India Pvt Ltd and subsequently joined Deloitte, where he rose to become Associate Vice President, Head of Legal and Company Secretary. He has also worked with International Paper India and PAREXEL International – India as Senior Director, General Counsel, Compliance Officer & Company joining Fourth Partner Energy, Shujath Bin Ali also served as Global General Counsel & Chief Compliance Officer at KKR-backed company Re Sustainability.'Shujath is a subject matter expert and dynamic industry leader. He is open to innovative ideas and always thinks outside the box,' said a senior executive who has worked with him. 'He is a complete team player, and be it with his superiors, colleagues or his team members, they speak highly about him,' he development comes at a time when India is witnessing heavy expansion and investment in the sector. The country has logged a threefold growth in its renewable power capacity in the last decade, with the installed green energy capacity reaching GW, including large hydro plants, compared to 75.52 GW capacity in March 2014, according to certain media has set an ambitious target of having 500 GW of renewable energy capacity by 2030, which requires the addition of about 50 GW of green capacity per annum in the next five to six years, suggests the reports.
Time of India
2 days ago
- Time of India
ETtech Explainer: Why are fintechs and their investors going after secured loans?
Live Events More and more fintech lending startups focusing on secured credit products such as loans against property (LAP), and loans against securities like mutual funds, are attracting venture capital (VC) home financing players like Vridhi Home Finance, Basic Home Loans, Easy Home Finance and others have been attracting venture investors, with their promise to bring about technology disruption in the sector. ETtech explains:Secured lending business is a financial service that provides loans to borrowers against collateral such as a vehicle or property. While banks and traditional non-banking financial companies (NBFCs) have been offering secured credit like home loans and auto loans for years, fintechs stayed away from these products, given the need for physical operations to evaluate the properties and assets. But now, startups are investing in branches and are building on-street teams to manage these shift comes as unsecured lending platforms witness a slowdown in the market, prompting startups to move towards secured credit products. Fintech platforms, including Paytm and Mobikwik, faced revenue pressure as banks and NBFCs scaled back on unsecured lending over the last few quarters. Even new-age NBFCs like Fibe, Kissht and others have seen stress on their books as new loan sanctioning slowed down. These trends have led to fintechs scouting for opportunities in secured Home Finance, Basic Home Loan, and Vridhi Home Finance together received nearly $150 million in equity capital from venture funds like Elevation Capital, Bertelsmann India Investments, Norwest Venture Partners, and Ranjan Pai's Claypond Capital. Mahaveer Finance, an NBFC based in Chennai, has raised $23 million from Elevation Capital and others with the aim of adding LAP and other similar NBFC Techfino has recently raised around $7.5 million from Stellaris Venture Partners and Saison Capital. Founded in 2019, the fintech company operates secured and unsecured lending models. The company focusses on secured more businesses move towards secured products, the unsecured lending startups are jumping onto the bandwagon. Fintech players Cred, BharatPe, and Paytm have announced a similar entry into secured products over the past year. Unsecured lending players like Kissht, Loantap, Fibe, and Kreditbee ventured into secured lending products such as are reducing their operational costs by making branches more efficient and leveraging technology to save costs and compete with big businesses. 'Traditionally, 70% to 80% of a housing finance company's costs go into running physical branches. We're bringing that down to 40% to 50% by leveraging technology, which enables lower customer acquisition costs and better interest rates,' said Atul Monga, CEO, Basic Home banks and larger NBFCs, branch expansions, while keeping costs in control, will remain a challenge for these while being attractive, tends to show up high non-performing assets (NPAs), which means fintechs will need to invest in strong collection teams. TransUnion Cibil's data released in January showed that LAP books showed among the highest NPA trends. As of September 2024, 1.7% of the LAPs were due for 90 days or more, said the report.'Investments in physical assets and branches would eat into the delta that fintechs can make between the cost of borrowing and rates they can offer their customers,' said Rohit Chokhani, founder, Easy Home Finance. 'This business will be sustainable only when there is a major scale.'
