Shiv Nadar, Sanjay Kalra Set Up $500-M Fund for Tech Play

Fund to buy mature US healthcare technology firm and invest in startups
HCL’s billionaire founder Shiv Nadar is partnering with Indian technology industry veteran Sanjay Kalra to set up a $500-million fund, which will buy out mature US healthcare technology firms and also invest in startups with disruptive solutions.This is the first time Nadar, 70, and worth nearly $12.9 billion, is allocating a portion of his wealth towards private investments in the technology industry . Kalra, a former top executive at HCL Technologies and Tech Mahindra, said the fund has already started buy out discussions with potential targets in the US.

“We are a group of operational executives with capital looking for buy-outs, carve-outs in the healthcare technology space in the US,“ Kalra, who is now the chairman of newly-set up Shiv Nadar & Sanjay Kalra Associates (SNSK), said in an interview. Overall healthcare spend in the US is expected to hit $3.207 trillion this year, according to CMS, and with around 320 million population, healthcare spending per person in the country will be $10,000 for the first time.

“With all new changes in regulations etc., suddenly a fresh industry is emerging,“ said Kalra. “New IPs and software platforms are going to play a key role in this transformation,“ he said.

On the fund’s exit strategy, Kalra said both him and Nadar will back companies for the long term.

“With just the two of us committed to the fund, this is patient capital not driven by the typical end of the fund cycles,“ he said.

Nadar and Kalra are attempting to tap the lucrative healthcare market in the US, which is going through a massive shift mostly using newer technologies such as big data, analytics and more intelligent software platforms that are helping healthcare service providers be come more efficient.

The fund plans to spend $500 million over next five years and target buyouts anywhere in the range of $50-$200 million. The fund will also help healthcare technology providers in the US leverage India’s R&D capabilities.

“Startups in India will be on our radar too. The idea will be to match disruptive solutions with mature companies that we buy out, so they can innovate faster,“ he said.

SNSK has hired Mahesh Nagaraj, a vice-president at Tech Mahindra, as the MD of this venture, to be based in the US. Another key hire is serial entrepreneur Vineet Jawa.

Source: The Economic Times

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Author:

Neeraj; an entrepreneur & a visionary in the field of Railway, Defense & Automobiles, is a graduate in commerce and a Harvard Business School Alumni. He’s an expert in govt. liasoning & contracting and has an exceptional network & connections at both local as well as global level. He’s an expert in Market Strategy & Planning and has served number of overseas companies as an advisor/consultant. He takes a profound interest in upcoming startups & is very receptive towards ground-breaking ideas & innovations. He likes to brainstorm those ideas and if the values & philosophies matches; he is even ready to invest his resources, serve as a mentor or act as an incubator to futuristic businesses.

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