OPIC backs Quadria healthcare fund, CX India mezzanine vehicle

Quadria, which reached a first close of $107 million last September and is seeking around $300 million, will receive $100 million from OPIC. LPs in the fund include the International Finance Corporation (IFC) and other development finance institutions, investment institutions, corporates and family offices globally.

This is the first vehicle that Quadria has raised independently. Its predecessor, the Milestone Religare India Build-Out Fund, was acquired from Milestone Capital and Religare following the death of Milestone's founder, Ved Prakash Arya. Amit Varma, Quadria's managing partner, had been the Religare representative involved in the joint venture.

The Quadria Capital Fund is run by a separate team of investment professionals. It focuses on healthcare delivery, life sciences, medical technology and retail healthcare in Bangladesh, India, Sri Lanka, Indonesia, Malaysia, the Philippines, Thailand and Vietnam. Only 30% of the corpus is expected to be deployed in India.

OPIC's policy review of the fund noted that South and Southeast Asia account for approximately 31% of the world's population and 40% of the world's disease burden, yet command only 5% of global healthcare expenditure. Varma previously told AVCJ that 80% of healthcare expenditure in these countries is out of the private pocket, with only 20% coming from the public purse.

CX Intermediate Private Capital Fund I is an offshoot of Indian GP CX Partners, which raised $515 million for its debut generalist fund in 2010. OPIC will commit up to $66 million to a strategy that is intended to improve access to finance for small and medium-sized enterprises.

The fund had an initial target of $250 million and built up early momentum, securing an anchor investor - said to be Ontario Teachers' Pension Plan - which put in around $70 million. However, fundraising subsequently faltered and AVCJ was told earlier this year that it would be a single LP vehicle. OPIC's late arrival appears to have altered these plans.

Founded in 1971, OPIC is the US government's development finance institution. To date, it has supported more than $200 billion of investment in over 4,000 projects, generated an estimated $76 billion in US exports and supported more than 278,000 American jobs.

OPIC's portfolio was worth $18 billion at the end of 2013, of which 15% was deployed in Asia. The agency made $3.9 billion in new commitments over the course of the year, with $178 million going to investment funds.

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• Topics
• Fundraising
• South Asia
• Southeast Asia
• Healthcare
• Mezzanine
• Overseas Private Investment Corporation (OPIC)
• Fundraising
• Quadria Capital
• healthcare
• Southeast Asia
• India
• Mezzanine
• CX Partners