Investment firm Gulf Capital wagers on expansion of a top-tier fertility business within India, following its stake disposal in the Middle East.
Gulf Capital, a UAE-based private equity firm, has partially exited its investment in a leading fertility chain in the region, selling its majority stake in the U.A.E. and Saudi Arabia clinics to IVI-RMA Global. However, the firm remains fully invested in the chain's Indian operations, signaling a strong commitment to this market's growth.
The sale, estimated to be between $400 million and $450 million, does not appear to have an immediate impact on the overall operations of the fertility chain. Gulf Capital's CEO, Karim El Solh, expects record exits and investor returns next year, indicating a positive outlook for the firm's future investments.
Since Gulf Capital’s initial investment in 2020, ART Fertility Clinics have expanded significantly, growing from 3 clinics to 15 clinics regionally, with 11 clinics in India. This rapid and focused expansion in the Indian market is a key factor in Gulf Capital’s growth strategy for the region.
The India operations were not part of the recent deal, suggesting Gulf Capital’s intention to double down on the Indian fertility business due to its promising growth prospects. ART Fertility Clinics have demonstrated strong financial performance, with profitability quadrupling over five years and rapid expansion driven by infrastructure investments and clinical excellence. These trends are likely to continue in India, supported by increasing demand for assisted reproductive technologies (ART) driven by rising awareness and a larger population base.
Gulf Capital is positioning its Indian operations for aggressive growth, leveraging the established ART Fertility Clinics network and its operational improvements. The firm continues to invest and expand in India even after exiting the Middle East operations. However, specific details about the identity of the firm that bought the majority stake in the fertility chain, or the future plans of the buyer, have not been disclosed.
[1] Gulf News, "Gulf Capital Partially Exits Leading Fertility Chain in the Region," [link], accessed 2023-03-15. [2] Zawya, "Gulf Capital Sells Majority Stake in ART Fertility Clinics," [link], accessed 2023-03-15. [3] Khaleej Times, "Gulf Capital Retains Control Over Indian Operations of Fertility Chain," [link], accessed 2023-03-15. [4] Bloomberg, "KKR's Second-Quarter Profit Increases Due to Growth in Fee Income," [link], accessed 2023-03-15. [5] No specific article was found regarding Gulf Capital's investment push into the infrastructure sector.
- Despite partially exiting its investment in a fertility chain's Middle East operations, Gulf Capital remains fully involved in finance-related activities, particularly in expanding its Indian operations of ART Fertility Clinics.
- The aggressive growth strategy of Gulf Capital's Indian operations in the assisted reproductive technologies (ART) sector suggests a significant focus on finance and investments, driven by promising growth prospects and increasing demand in the region.
