Morgan Stanley Investment Management is actively sounding out investors to transition a portfolio of eight Indian healthcare assets into a specialized continuation vehicle. The firm is targeting a fundraise of **$500 million** for this new strategy, reflecting a broader shift toward secondary-market solutions to manage mature private equity holdings. Key assets identified for the transfer include Omega Hospitals and RG Scientific Enterprises. RG Scientific stands as India's largest urology-focused hospital chain, currently operating **14 hospitals** with more than **500 beds** across seven major cities. These assets are being positioned at a time when the Indian hospital sector is maintaining a robust growth trajectory, with revenues projected to climb **16% to 18%** in the 2026 financial year. The move comes as the Indian healthcare market experiences a surge in transaction intensity. Secondary market exits in India reached approximately **$12.9 billion** in the previous year, accounting for nearly **48%** of all private equity exit value. This trend is supported by high liquidity and a maturing investor base that increasingly prefers specialized healthcare platforms. Operational metrics within the sector remain strong. Listed hospital groups are reporting occupancy levels between **62% and 64%**, while Average Revenue Per Occupied Bed (ARPOB) is expected to expand by **6% to 8%** this year. These healthy margins, currently hovering around **23.7%**, provide a stable backdrop for Morgan Stanley's transition of these assets into a long-term vehicle. Investor interest is further fueled by structural tailwinds, including a **12.6% increase** in government healthcare budget allocations and a rapidly growing medical tourism market, which was valued at **$8.7 billion** in 2025. With private equity deals in the hospital space jumping **166%** in recent quarters, the continuation fund model allows managers to retain high-performing assets while providing liquidity to existing limited partners. This strategic pivot underscores a wider trend in India's **$193 billion** hospital market, where institutional players are moving away from simple growth capital toward controlling stakes and portfolio consolidation to capture long-term value in a consolidating landscape. [Overview of Morgan Stanley's healthcare investment strategy](https://www.youtube.com/watch?v=3Hs9D_A38ks) This video provides additional context on the budget initiatives and infrastructure trends that are currently shaping the investment climate for Indian healthcare assets. http://googleusercontent.com/youtube_content/0