International Finance Corporation has proposed a limited partnership investment of up to $25 million (Rs 180.47 crore at current exchange rates) in the second fund of healthcare-focussed private equity firm Quadria Capital.
The World Bank's private-sector investment arm said in a disclosure that Quadria Capital Fund II will focus on South and Southeast Asia. The fund has a target size of $400 million and a hard cap of $500 million, it said. It hit its first close at $194 million in March.
Singapore- and Delhi-based Quadria had started introductory roadshows to raise its second healthcare fund a year ago, VCCircle reported previously. Managing partner Amit Varma had said at the time that the firm was in talks with its existing LPs to raise the new fund.
Washington-based IFC said the new fund will make investments in companies concentrating on providing healthcare delivery, life sciences, medical technology and associated services in the segment.
The institution said its proposed commitment will help the new fund invest in businesses that will address the gaps in healthcare ecosystem across South and Southeast Asia. The commitment will also act as a positive signal to other potential investors in the fund.
Quadria’s debut fund had made nine investments, of which five were in India but comprised only 45% of the total money invested. While the size of the first fund stood at $300 million, the total investment in its portfolio firms went up to $420 million with co-investments from its LPs.
IFC actively invests in India through both equity and debt instruments. It also actively makes LP-style bets on PE and venture capital funds.
In May, IFC proposed to contribute $12 million (around Rs 83.6 crore) to the Accion Quona Inclusion Fund. Quona Capital was earlier called the Frontier Investment Group, which was part of Accion International. It is now a separate entity although Accion is an anchor investor in its fund.
In March, it proposed to come on as an LP in the debut venture capital fund of investment firm A91 Partners by putting in $25 million (around Rs 177 crore) A91 Emerging Fund I LLP. The target corpus of the fund was pegged at $250-$300 million.
Last year, it proposed to come on as an LP by committing $100 million (around Rs 650 crore then) to the India Resurgence Fund, which was set up by Bain Capital Credit and Piramal Enterprises in 2016.