Mumbai: The Ajay Piramal Group-owned private equity (PE) firm, India Venture Advisors, is to launch its second $150-million (around Rs 730 crore) healthcare fund next year. The firm’s first Rs 400-crore healthcare fund is being raised from domestic sources. The second fund, however, will be completely raised from foreign limited partners. The company, which has made only a single investment in Kavery Medical Centre from its fund, is expected to close the first fund by end of this year. Also in the offing is a Rs 500-1,000-crore infrastructure fund. India Venture Advisors, launched in 2007, has its major focus on healthcare and life sciences investments in areas such as healthcare delivery (hospitals), support (IT-BPO) and other services, including clinical research.

AK Purwar, chairman of India Venture Advisors, and former chairman, SBI, told FE, “Healthcare, one of the fastest growing sectors, gives immense opportunities to investors. There is huge potential in services as well as medical tourism sectors in India as far as investments are concerned.” India Venture is in the stage of finalising three-four deals in healthcare delivery and support spaces with deal size ranging from Rs 30-50 crore.

However, Purwar did not disclose more on infrastructure fund, saying, “It is too early to say.”

According to a Grant Thornton India study, out of the six deals that took place in healthcare and pharmaceuticals space in the first half of 2009, hospitals and diagnostics sectors witnessed two deals each, worth $20 million and $60.50 million, respectively. Healthcare services and pharmaceuticals witnessed one deal each, worth $33 million and $5.5 million, respectively.

Investments by Global Technology Investment Group in Nova Medical Centres ($60 million), International Finance Corporation in Max India ($33 million) and India Venture Advisors in Kavery Medical Centre ($20 million) are the major PE deals that took place in domestic market during the first half of 2009.

In the last five years, PE and venture capital investors have invested over $2 billion in healthcare and life sciences companies and, as per analysts, are keen to tap sectors like diagnostic services, medical devices, equipment, hospital chains and wellness products and services.