Bain Capital's $157 million investment in Mayapada Hospital raises eyebrows

In recent weeks, Bain Capital, a prominent U.S. private equity firm, announced its intention to invest $157 million in Sejahteraraya Anugrahjaya, the operator of the Mayapada Hospital chain in Indonesia, which is backed by billionaire Tahir. The investment is structured as $32 million in new shares and $125 million in bonds. This strategic move comes amid Tahir's aggressive expansion efforts in the healthcare sector, which have included a partnership with Indian billionaire Prathap Reddy to develop a new hospital on Batam island, less than an hour from Singapore. The planned Mayapada Apollo Batam International Hospital will be constructed on a three-hectare plot within a designated economic zone and is set to become a pivotal part of Mayapada Group's healthcare portfolio. With the aim of investing approximately 2 trillion rupiah (around $128 million) into this new facility, Sejahteraraya is also expanding its existing operations. In October, the company opened its seventh hospital in Nusantara, the future capital of Indonesia, in East Kalimantan, further emphasizing its commitment to growth. At the end of 2023, the healthcare company reported a total of 1,120 beds across its six hospitals and has an ambitious vision to double this capacity to over 2,200 beds and operate as many as 12 hospitals by the year 2027. This significant scaling up of operations reflects a broader trend of increasing investments in Indonesia's healthcare sector. Other investment players have also been active in Indonesia's healthcare space. Luxenbourg-based CVC Capital Partners gained control of Siloam Hospitals, buying an additional 45% stake from Lippo Karawaci, while Saratoga Investama Sedaya acquired the Jakarta-based Brawijaya Hospital. This surge of investment activity highlights the growing opportunity and demand for healthcare services throughout Indonesia. According to Forbes, Tahir, who is spearheading this growth, has an estimated net worth of $5.2 billion, and his Mayapada Group has diversified interests across different sectors, including banking and real estate, further positioning him as a key player in the Indonesian economic landscape.