The investment will give Advent a 24.9% minority stake in the Indian hospital operator.

Advent International has agreed to invest INR31.5 billion ($328.5 million) in listed Indian hospital operator Yatharth Hospital & Trauma Care Services for a 24.9% minority stake, expanding the U.S.-based private equity firm’s healthcare investments in India. The investment will be made through primary capital. The transaction is subject to customary closing conditions.

The structure also distinguishes the transaction from a secondary share sale. Advent's investment will inject fresh capital into Yatharth, while the founding Tyagi family will retain its position as the company's largest shareholder.

Fresh capital will fund Yatharth’s expansion

The investment gives Advent a minority position in Yatharth while directing fresh capital into the hospital operator. Because the investment is primary capital, the proceeds will go to Yatharth rather than existing shareholders selling their shares.

Yatharth said the capital will support its next phase of expansion. The agreement comes as private equity firms continue investing in India’s hospital sector. Reuters reported recent transactions involving KKR’s $1.4 billion acquisition of Medicover’s India operations and Blackstone’s controlling investment in CARE Hospitals.

Nine hospitals expand Yatharth’s North India footprint

Founded in 2008, Yatharth operates nine multispecialty hospitals with about 2,800 operational beds and an announced capacity of approximately 3,250 beds, according to the company.

Its network covers locations in the National Capital Region, including Noida, Greater Noida, Noida Extension, Greater Faridabad, New Delhi, Faridabad and Gurugram. The group also operates in Jhansi-Orchha in Madhya Pradesh and has expanded into Agra.

Yatharth has expanded through organic growth and acquisitions. The new investment is expected to provide additional capital as the company expands its hospital network and capacity.

Tyagi Family remains the largest shareholder

Advent's 24.9% stake will not transfer control of Yatharth from its founding promoter group. The Tyagi family will remain the company's largest shareholder after the transaction closes. Full-time Director Yatharth Tyagi said the investment would help the company expand its reach and strengthen its capabilities.

Advent adds to its Indian healthcare portfolio

The Yatharth transaction adds to Advent’s healthcare investments in India. Advent said its healthcare investments in India include Apollo 24/7, Cohance, Felix Pharma, Bharat Serums and Vaccines and CARE Hospitals.

Advent Managing Director Pankaj Patwari said the investment reflects the firm’s commitment to India’s healthcare sector and its experience investing in founder-led businesses.

Globally, Advent said it has made more than 55 healthcare investments across 17 countries over more than 35 years.

Advent and Yatharth have signed a definitive agreement, but the transaction remains subject to customary closing conditions. The investment will give Advent a 24.9% minority stake once completed.