NPS, KTCU pour $100 mn into healthcare co-investments
Jun 08, 2018 (Gmt+09:00)
The National Pension Service (NPS) has put around 100 billion won ($93 million) into an equity stake in Dental Corporation, Canada’s largest network of dental clinics, in a co-investment with L Catterton, a consumer-focused private equity firm, according to sources with knowledge of the matter on June 7.
Separately, the Korean Teachers’ Credit Union (KTCU) has invested about $7 million in St. George's University, a Caribbean medical school in Grenada, in a co-investment with the Carlyle Group.
No further financial details were immediately available.
Their recent co-investments underscored the strong interest of private equity investors in the healthcare sector.
In the ASK 2018 Global Private Equity & Debt Summit on May 29, Korea Investment Corporation and Teachers’ Pension picked healthcare as one of a few sectors they are chasing for private equity investment.
With a rapid increase in aging populations, the prospects of more interest rate hikes and an economic slowdown raised the attractiveness of healthcare-related companies because they are seen less cyclical.
For NPS, its co-investment in Dental Corporation followed the $100 million commitment in 2016 to a $2.5 billion blind-pool fund of L Catterton. It became the first South Korean investor in L Catterton with the capital commitment.
He added that the $580 billion pension scheme requires co-investing for large buyouts, for example, when writing $100 million equity checks.
In April, Dental Corporation said that it secured a significant strategic investment by L Catterton, without disclosing financial details. It provides all management services to over 250 dental clinics across Canada.
L Catterton was launched in 2016 through the partnership of private equity firm Catterton, luxury goods maker LVMH and Groupe Arnault, a French investment company.
By Chang Jae Yoo
yoocool@hankyung.com
Jul 02, 2024 (Gmt+09:00)
Jun 28, 2024 (Gmt+09:00)
Jun 26, 2024 (Gmt+09:00)
Jun 24, 2024 (Gmt+09:00)
Jun 21, 2024 (Gmt+09:00)