Private Equity Firm TPG Under Fire for Profit-Over-Patients Practices at Hospitals in Africa

A Bloomberg News investigation has found that private equity firm TPG's hospitals in Africa and Asia have sometimes failed to deliver on promises to make healthcare more accessible. Whistleblowers raised alarms about pressure to boost revenue by performing unnecessary procedures and falsifying financial reports. Staff reported errors and infections due to high patient volumes and aggressive revenue targets. The Rise Fund, backed by the World Bank and Gates Foundation, manages five hospitals and dozens of clinics in three countries.

Private equity giant TPG Inc. has expanded its investment strategy in Asia, moving away from its traditional focus on large deals to capitalize on the growing mid-sized buyout market. The shift comes as mega deals in Asia have slowed due to subdued activity in China, with funds like TPG increasingly targeting mid-market investments where deal sizes typically range between $50 million to $100 million [1].

TPG, based in San Francisco, has raised funds for its Asia emerging companies fund, with its first closing in the first quarter of 2025. This move follows the trend of other large buyout funds, such as Sweden-based EQT, which has raised $1.6 billion for its Asia-focused mid-market buyout fund, more than double its initial target [1]. TPG's last Asia buyout fund closed in 2024 after raising about $5 billion, managing approximately $23 billion in the region, while the firm globally has around $261 billion [1].

Despite the growing interest in mid-sized investments, concerns have been raised about the healthcare sector in Africa and Asia. Whistleblowers have reported that TPG's hospitals in these regions have sometimes failed to deliver on promises to make healthcare more accessible. Allegations include pressure to boost revenue through unnecessary procedures and falsified financial reports, as well as staff-reported errors and infections due to high patient volumes and aggressive revenue targets [2].

The Rise Fund, backed by the World Bank and Gates Foundation, manages five hospitals and dozens of clinics in three countries, highlighting the complex dynamics of private equity in healthcare. While private equity firms bring significant capital and operational expertise, the short-term investment horizons can sometimes conflict with the long-term needs of healthcare infrastructure [2].

As TPG and other private equity firms continue to invest in the mid-sized buyout market in Asia, the industry is closely watching the impact of these investments on healthcare accessibility and quality. The shift in ownership and investment strategies in the healthcare sector, particularly in India, has reshaped the market, attracting significant interest from global players and leading to large acquisitions [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-24/tpg-joins-asia-s-rush-for-mid-sized-buyouts-with-latest-fund
[2] https://m.economictimes.com/industry/healthcare/biotech/healthcare/global-pe-firms-tighten-grip-on-indias-80-billion-hospital-sector/articleshow/123469753.cms