Gulf Capital invests in Indian operations of forefront fertility company following the sale of its Middle Eastern holdings
Gulf Capital Bolsters Indian Fertility Operations After Partial Exit from Middle East
Gulf Capital, a leading UAE-based private equity firm, has announced a strategic move to partially exit its operations in the fertility sector in the Middle East, while maintaining full ownership of its 11 clinics in India [1][3][4]. The sale of its majority stake in the fertility chain, estimated to be worth between $400 million and $450 million, does not include its control over the Indian operations.
Since 2020, Gulf Capital has expanded ART Fertility, initially a UAE-only operator, into a regional network of 15 clinics, with a significant focus on India. During this period, the firm has seen a fourfold increase in profitability, driven by operational improvements and infrastructure investments [1][3].
ART Fertility's India operations remain with Gulf Capital following the sale of its Middle East clinics to IVI-RMA Global, a global fertility leader. This move indicates Gulf Capital's confidence in the Indian market and its commitment to building the business independently [1][3].
Gulf Capital's healthcare investments focus on scaling specialized medical services with high differentiation potential and rapid growth, making the fertility sector an ideal fit for their strategy [2]. ART Fertility's investments in clinical research and advanced genetic testing have resulted in one of the highest IVF success rates globally, bolstering the brand’s reputation and competitive edge in India [2][3].
Senior Gulf Capital executives have expressed plans to "double down" on the Indian fertility business, signaling continued capital deployment and strategic expansion attempts in the market [4]. This strategic move underscores Gulf Capital's view of its ART Fertility Clinics in India as a high-potential growth platform, poised for continued expansion.
It's worth noting that the sale of Gulf Capital's majority stake in the fertility chain is not directly linked to the profit rise of another private equity firm, KKR. Additionally, no specific details were given about the buyer of Gulf Capital's majority stake in the fertility chain or the timeline for Blackstone's potential expansion into the infrastructure sector.
[1] Gulf News, Gulf Capital sells majority stake in ART Fertility, 2022. [2] Khaleej Times, Gulf Capital's healthcare investments focus on scaling specialized medical services, 2021. [3] Gulf News, Gulf Capital's ART Fertility Clinics in India poised for growth, 2022. [4] Zawya, Gulf Capital sees record exits and investor returns next year, 2022.
Gulf Capital, while exiting its operations in the fertility sector in the Middle East, remains committed to growing its business by maintaining complete ownership of its 11 clinics in India. This move demonstrates their focus on investing in the Indian market and expanding their business independently in the area of healthcare, particularly in the fertility sector.
