Sep 14, 2015 02:00 PM IST | Source: CNBC-TV18

Shiv Nadar, ex-Tech Mah CEO in VC space; launch $500m fund

It is a US healthcare IT focused firm which will invest in mature companies, transform them through operating expertise, through capital investment, said Sanjay Kalra, Chairman of SNSK.

HCL Tech’s Shiva Nadar and Sanjay Kalra are launching a USD 500 million fund to invest into US healthcare IT products & platforms.

In an interview CNCB-TV18's Poornima Murali Sanjay Kalra, Chairman and Mahesh Nagaraj, Managing Director of Shiv Nadar & Sanjay Kalra Associates (SNSK) spoke about their newly launched investment firm and the outlook going forward.
Below is the transcript of Sanjay Kalra & Mahesh Nagaraj’s interview with Poornima Murali on CNBC-TV18.

Q: Could you give us more details about this fund?

Kalra: SNSK Associates is a limited liability partnership (LLP). We incorporated it at the beginning of this year and our objective is to invest up to USD 500 million in the US healthcare IT products and platforms. Our thesis is that we will buy out or carve out a few mature healthcare IT products and platforms in the US.

Our intent is to create an integrated portfolio and once we have this portfolio, then to turn towards the innovated start-up and early stage company space and invest in select companies there. Wherein either the product or technology or talent of these companies will help us in achieving objectives of our integrated portfolio.

That is really what the fund. It is a US healthcare IT focused firm which will invest in mature companies, transform them through operating expertise, through capital investment and re-capitalisation through – but most importantly by also growing their markets; but then also using early stage and startup companies and using them to help transform these companies.

The way you should look at this company is not like a private equity fund but you should look at it as a bunch of operating executives who have capital. That is the way I like to look at ourselves. We are really operating executives and we have capital and we will go and work closely with these companies to create the vision we have of creating these firms.

Mahesh: US healthcare IT space is 16 percent or 17 percent of the US gross domestic product (GDP), which is almost worth USD 3.2 trillion. This sector specifically has been impacted significantly by the Affordable Care Act or what is called as ObamaCare. What it has really done is that it has brought down the barriers to entry for many organisations. SNSK is trying to capitalise upon the wind of opportunity that is getting opened up. So, there is a significant potential to be leveraged.

We are looking at opportunities right across the provider and payer landscape and going into a specific segments within the payer right across the physician practices, going to ambulatory hospitals and long-term acute care.

We will look at solutions spanning this whole continuum which could be right from customer engagement, going down to revenue cycle management, supply chain management and clinical management. So, it is a complete range of areas that we will be looking at to leverage the opportunities that are getting opened up.

Q: So you have set aside USD 500 million for this space. What is the timeline that you have given for this? Will you be investing more as you go forward?

Mahesh: The timeframe is medium-term for the fund that we are talking about.
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