Toro Finserve gets Sebi approval for healthcare fund
Mumbai: Toro Finserve LLP Monday said its India Healthcare Opportunities Fund (IHOF) has received approval from the Securities and Exchange Board of India (Sebi).
The fund launched by Kapil Khandelwal, an investment and healthcare industry veteran and Tapan Bhatt, a global real estate investment manager, is planning to raise a corpus of $250 million with a provision of availing of additional leverage of $250 million.
The fund will invest in healthcare real estate with long-term leases such as hospitals, diagnostic centres, rehab facilities and assisted living facilities with established healthcare operators in tier I and tier II cities in India.
“Over $200 billion is expected to be spent on development of healthcare infrastructure for India to get to Indian government’s target of 3 beds per 1,000 people by 2025. Our fund expects to create and invest in healthcare infrastructure where institutional investments in healthcare infrastructure has been shy and selective around a few chains of private hospital so far. Indirectly, we are also creating social impact through increasing the supply of scarce healthcare infrastructure in our country,” Khandelwal, managing partner of Toro Finserve said.
According to a company statement, the fund has commitments of $110 million from three state governments in India, ultra high net-worth individuals and fund of funds from abroad. It is expected to start its formal marketing roadshow in India and abroad in November 2017.
The fund expects to acquire and build over 6 million square feet of healthcare space over its term. The fund has also formed a consortium of partners to deliver cheaper and better healthcare infrastructure.
According to Khandelwal, one of the major pain points for developing healthcare real estate is the time to build and the regular operating costs for running and maintaining healthcare facilities.
“Our plans are to reduce these by half through our strategic partner ecosystem,” Khandelwal added.