o3 Capital acted as the exclusive financial advisor to RG Hospitals on its majority stake sale to Morgan Stanley Private Equity Asia.

The deal underlines o3 Capital’s deep understanding of the single-specialty healthcare segment having consummated two successful closures in urology in the last 12 months.

Founded in 1986, RG Hospitals is a specialty hospital chain providing short stay surgeries for urology, general surgery, gynaecology, nephrology and other adjacent specialties. RG Hospitals is the pioneer of quality urological and minimal access surgical care with a track record of launching new technologies and procedures in India. It currently operates 13 hospitals and 4 out-reach centres with nearly 500 beds across Delhi NCR, Mumbai, Kolkata, Chennai, Ludhiana, Goa and Dehradun. RG Hospitals is led by professional management and its experienced doctor team is equipped with state-of-the-art infrastructure, including robotic surgical equipment.

Morgan Stanley Private Equity Asia (“MSPEA”) is one of the leading private equity investors in Asia-Pacific, managing third party money funds, having invested in the region for over 20 years. MSPEA invests primarily in highly structured minority investments and control buyouts in the mid-market segment. The experienced investment team is led by senior professionals with extensive industry relationships, in-depth market knowledge and the ability to apply international investment principles within each local context.

MSPEA has offices in Hong Kong, Beijing, Shanghai, Seoul, Tokyo, Mumbai, Bangkok and New York, and leverages the brand and unparalleled global network of Morgan Stanley. In India, MSPEA has been operating for over a decade and funds managed by MSPEA have made 15 investments across the pharma, healthcare, consumer and financial services sectors.

Speaking about the deal, Avinash Ojha, CEO of RG Hospitals said,“This investment by MSPEA underlines our robust clinical fundamentals and business practices. This investment highlights the pressing need for enhanced urology and laparoscopy facilities in India. As we embark on the next phase of our growth journey, we are excited to leverage MSPEA's expertise in specialty healthcare. This investment marks not only a financial milestone but also a significant opportunity to transform the healthcare landscape in India. I would also like to extend my heartfelt gratitude to our existing investors for their unwavering trust and support. Together with our new partners at MSPEA, we are poised to take this company to new heights and drive meaningful improvements in patient care.”

Nirav Mehta, Managing Director and Co-head of MSPEA said, “We believe that the urology and the minimal access general surgeries segment in India is poised for strong growth. RG Hospitals is the market leader in this space and its brand is synonymous with quality care, reputed doctors and state of the art infrastructure. Under Avinash’s leadership, RG Hospitals has put in place building blocks for future growth, with a customer-centric approach and an emphasis on maintaining high medical standards. We are excited to be partnering with RG Hospitals in its journey ahead.”