Singapore- and Delhi-based private equity firm Quadria Capital has marked the final close of its second healthcare-focused fund at $595 million (Rs 4346.84 crore), overshooting its initial target to raise $400 million.
Limited Partners (LPs), investors in the fund include global asset managers, pension funds, sovereign wealth funds, insurance, healthcare corporates, and development finance institutions across the US, Europe, and Asia, Quadria said in a statement.
It did not disclose their identities.
Quadria had hit the road to raise the second fund in late 2018 and the same year it had got a commitment of $150 million (Rs 1,078 crore) from Overseas Private Investment Corporation (OPIC) for the fund, VCCircle had reported.
OPIC, a development financial institution run by the US government, had committed $100 million to Quadria's first fund of $300 million as well.
Besides OPIC, International Finance Corporation (IFC) had proposed a limited partnership investment of up to $25 million last year.
The second fund has already made two investments. VCCircle reported late last year that Quadria made its debut deal from the second fund by investing contract research and manufacturing firm Akums Drugs & Pharmaceuticals Ltd. Subsequently, the private equity firm also doubled down on Asian Institute of Gastroenterology Pvt. Ltd, its portfolio company from its first fund.
The investment in Asian Institute of Gastroenterology was made in partnership with Mayo Clinic Network, the statement added.
Amit Varma, managing partner at Quadria Capital, had told VCCircle that investment strategy for the new fund will “pretty much remain the same”. However, the ticket size for the second fund was expected to rise up to $75 million as compared with $30-50 million from the first fund.
Quadria Capital mainly focuses on four themes – healthcare delivery (primarily hospitals), growth life sciences, medtech & consumables, and the fourth is what Varma calls “retail-like healthcare at home”.
Abrar Mir, managing partner at Quadria Capital, said in a statement that Asia's healthcare market is expected to reach $4.2 trillion in the next five years, exceeding that of the US and Europe combined today. "It will continue to grow at 12% annually, compared to 5% growth globally," he added.
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.
Apart from Asian Institute of Gastroenterology, the private equity firm's other India investments from the first fund are hospital chain Medica Synergie, biotechnology company Concord Biotech, home healthcare firm Healthcare at Home and genomics and biotechnology research firm Strand Life Sciences.
The private equity firm, however, is yet to announce any exits.
Other healthcare funds
There are not many healthcare-focused PE firms in India. Among the prominent ones include InvAscent, Asian Healthcare Fund, and Somerset Health Capital Advisors.
InvAscent hit the final close of its third fund at $250 million in January last year. Somerset is also raising a new fund while Asian Healthcare Fund recapitalised its debut fund in 2018 to invest in existing portfolio firms.
Another South- and Southeast-Asia-focused private equity firm is Creador, which also invests in healthcare and pharmaceuticals besides other sectors.