India to Attract Major Share of EQT's $15.6-billion Asia Fund: EQT India Head

Why It Matters

The allocation signals strong confidence in India’s under‑penetrated buyout market and will likely accelerate capital inflows, raising competition for control deals. It also highlights healthcare as a key growth engine for private‑equity returns in the region.

Key Takeaways

• EQT expects India to receive ~one‑third of $15.6B Asia fund.
• Co‑investment adds $1.6 for every $1 fund capital.
• Recent Indian buyouts include $1.25B Credila deal and $1.1B Indira IVF.
• Healthcare services identified as top growth sector for EQT in India.
• EQT targets 2.5x MOIC, aiming for low‑20% IRR in India.

Pulse Analysis

EQT’s newly launched Asia fund, sized at $15.6 billion, continues a pattern of allocating the biggest share to India despite the firm’s non‑prescriptive country‑allocation policy. Historically, roughly one‑third of the fund’s capital has been deployed in India, a proportion the firm expects to repeat. The co‑investment structure, which generates about $1.6 of additional capital for every dollar of core fund money, effectively enlarges the pool of equity available for large‑scale buyouts and strategic stakes across the market.

The firm’s recent activity illustrates its sectoral focus. In 2023, EQT closed a $1.25 billion purchase of a 90% stake in Credila and a $1.1 billion acquisition of a majority interest in Indira IVF, both emblematic of its buyout‑oriented approach in financial services and healthcare. EQT also holds minority stakes in healthcare‑tech operators such as Asian Institute of Gastroenterology and GeBBS Healthcare Solutions, reinforcing its belief that healthcare services—particularly multi‑specialty hospitals, diagnostics and specialty‑care providers—offer substantial upside. While industrial technology is being explored, the firm expects most Indian investments to stay within its established sectors.

For the broader private‑equity landscape, EQT’s commitment underscores India’s growing appeal as a source of high‑multiple returns. Targeting a 2.5‑times multiple on invested capital and low‑20% internal rates of return, EQT leverages the country’s 7% real GDP growth and double‑digit nominal expansion to drive operational value creation. The emphasis on control‑oriented buyouts, coupled with a robust co‑investment pipeline, is likely to intensify competition among global PE firms seeking to capture a larger share of India’s still‑under‑penetrated buyout market, especially in healthcare and financial services.