EQT Secures $162M Loan for Indira IVF Shareholder Distribution

Key Takeaways

Sector: Healthcare Healthtech & Medtech.
Geography: India.

Analysis

Private equity firm EQT AB has raised approximately $162 million through a dividend recapitalization to distribute funds to shareholders of Indira IVF, India’s largest fertility clinic network.

The six-year loan was backed by a consortium of 16 lenders, including global financial giants such as BNP Paribas, HSBC, and DBS Group, along with multiple Taiwanese banks. The transaction is structured as a dividend recapitalization—a strategy increasingly used by private equity sponsors to return capital to investors without pursuing a public listing or acquisition.

This financing move aligns with a broader trend in the private equity sector, where firms are seeking alternative liquidity routes amid a cooling exit environment. As IPO markets remain tepid and trade sales slow, dividend recapitalizations have become a go-to mechanism for returning capital to limited partners.

Indira IVF, with over 150 clinics and more than 330 specialists across India, has been a strong performer within EQT’s portfolio since its acquisition in 2023 from TA Associates and the company’s founders. The founding team has retained a minority stake and continues to be actively involved in the company’s operations.

EQT’s financing initiative mirrors similar actions in the industry. Earlier this year, EQT’s portfolio company Fitness Passport raised AUD 500 million ($321 million) via a syndicated loan, partially to fund a dividend. Likewise, Clayton, Dubilier & Rice’s Wolseley Group floated a £350 million ($470 million) secured bond for a similar purpose.

Market speculation suggests EQT may still be considering an IPO for Indira IVF, potentially targeting a $400 million raise later this year. This would offer another path to liquidity as the firm navigates a challenging exit landscape.