Carlyle to sell stake in Visionary RCM2 min read . Updated: 16 Jan 2020, 11:34 PM IST
- PE plans to exit health tech firm at a valuation of up to $300 mn
- Carlyle Group is now scouting for strategic and private equity buyers in the market
MUMBAI : Private equity (PE) firm Carlyle Group is looking to sell its stake in Visionary RCM Infotech (India) Pvt. Ltd, two people aware of the development said, requesting anonymity. The Washington-based firm had bought a majority stake in the company in December 2017 from its fourth Asia-focused fund, Carlyle Growth Investments IV, for nearly $65 million.
“Carlyle is looking to sell its entire stake in Visionary RCM at a valuation of $200-300 million," said one of the people cited above. “It is scouting for strategic and private equity buyers in the market and has appointed Credit Suisse to manage the sale process."
Carlyle Group and Credit Suisse declined to comment to email queries.
Founded in 2006 by Rajesh P. Surana, Visionary RCM provides risk-adjustment services, revenue cycle management, audit of medical records, and medical coding solutions to physicians, hospitals, insurers and third-party administrators. Headquartered in Chennai, the healthcare technology firm has five offshore delivery centres and three global subsidiaries in Minnesota, Florida and California. It manages over 3,000 employees and offers services to over 250 healthcare clients across the world.
Carlyle Growth Investments IV, an affiliate of Carlyle Asia Growth Partners V, was launched in 2008 with a corpus of $1.04 billion. It was a sector-agnostic growth capital fund that invested in private high-growth firms in China, India, Japan and Korea.
In 2020, Carlyle plans to partially sell its stake in SBI Cards and Payment Services Ltd, the credit card unit of State Bank of India, through an initial public offering. It will be Carlyle’s largest stake sale in an Indian firm. At an expected enterprise valuation of up to ₹65,000 crore, the stake sale could be worth ₹6,500 crore.
In November 2019, Carlyle sold its 3% stake in SBI Life Insurance for over ₹2,800 crore through an open market transaction. The PE firm, through its entity CA Emerald Investment, had acquired a 9.2% stake in the life insurer in March. In March 2019, the PE firm sold close to half of its 31.2% stake in diagnostics chain Metropolis Healthcare Ltd through an IPO for about ₹652.3 crore. Carlyle had acquired the stake in 2015 from G.S.K. Velu, the former co-promoter of the diagnostic chain.
As on 30 September 2019, Carlyle managed assets worth $222 billion, of which over one-third were deployed in multiple private equity funds across six continents. Its corporate private equity division has, so far, invested $103 billion in equity across 643 transactions and has generated nearly $84 billion in realized and unrealized gains, according to its website.
While its buyout fund family, which has assets of $77 billion under management, comprises 25 funds that focus either on a particular geography or a particular industry, its growth capital fund unit runs 11 funds advised by three regionally-focused teams in Asia, Europe and the US, and had about $7 billion in assets under management as on 30 September.