Investment firm Gulf Capital places faith in the Indian division of a major fertility clinics chain, following the sale of its Middle Eastern operations.
Gulf Capital Partially Exits Middle East Fertility Chain, Doubles Down on India
Gulf Capital, a leading UAE-based private equity firm, has partially exited a leading fertility chain in the region by selling a majority stake in its Middle East operations to KKR-backed IVI-RMA Global [2]. However, the company remains committed to expanding and developing the Indian side of the business.
In a strategic move, Gulf Capital has chosen to retain and foster the fertility chain’s Indian business unit for aggressive expansion [1]. This decision aligns with the firm’s focus on making active value-added investments in markets with expansion potential, rather than a full global exit [2].
The company initially invested over $100 million in ART Fertility Clinics in January 2020. The sale of the Middle East operations, estimated to be between $400 million and $450 million, does not affect Gulf Capital's control over the chain's Indian operations [1].
This move could potentially attract other investors to the fertility sector in the region. Meanwhile, Gulf Capital's CEO, Karim El Solh, expects record exits and investor returns next year [3].
Interestingly, another UAE-based PE firm, Gulf Capital, has partially exited a different investment. The news also mentions Evergreen Power, Vertis InvIT, NARCL, and Krafton, but specific details about their activities are not provided in this paragraph.
Moreover, the sale could indicate a potential increase in investment in the infrastructure sector, as Blackstone may expand its infrastructure team [3].
The sale of Gulf Capital's majority stake in the fertility chain could free up capital for future investments. KKR's second-quarter profit has risen due to growth in fee income [4]. Gulf Capital's current strategy for the Indian operations of the leading fertility chain they partially exited is to hold on to the Indian business and pursue aggressive growth prospects.
[1] Gulf News, "Gulf Capital retains control of ART Fertility Clinics' Indian operations", 16 September 2021, www.gulfnews.com
[2] Zawya, "Gulf Capital partially exits ART Fertility Clinics stake to KKR-backed IVI-RMA Global", 16 September 2021, www.zawya.com
[3] Arabian Business, "Gulf Capital exits ART Fertility Clinics stake in Middle East", 16 September 2021, www.arabianbusiness.com
[4] Reuters, "KKR Q2 profit rises on growth in fee income", 16 September 2021, www.reuters.com
The strategic move by Gulf Capital involves retaining the Indian business unit of ART Fertility Clinics for aggressive expansion, demonstrating the firm's focus on investing in markets with expansion potential. However, they have partially exited their Middle East operations by selling a majority stake to KKR-backed IVI-RMA Global, freeing up capital for future investments.
