Quadria hits $500m first close on third healthcare fund

It follows commitments of USD 25m and USD 35m from Asian Development Bank (ADB) and French development finance institution (DFI) Porparco earlier this year. Insurance companies, pension funds, and family offices from the US, Europe, and Asia are also part of the LP mix.

The vehicle was launched last year with a view to raising as much as USD 1bn. The first two flagship funds closed on USD 304m in 2015 and USD 595m in 2020 with support from DFIs such as the International Finance Corporation and the US Development Finance Corporation.

Assets under management amount to more than USD 3.4bn, including a VC unit called HealthQuad that closed its second fund last year on USD 162m, more than doubling the target corpus. 

Last August, Quadria also secured a revolving credit facility of up to USD 200m with HSBC Singapore and ING Singapore for investments deemed as social projects.

“Asia healthcare remains a highly resilient sector with tremendous growth prospects, especially given rising regional demand and huge unmet needs,” Amit Varma, co-founder of Quadria, said in a statement. “We have unique expertise and networks to support and accelerate the growth of portfolio companies poised to become industry leaders and drive social impact in the region.”

Fund III will maintain Quadria’s historical remit, targeting large, scalable, market-leading businesses in South and Southeast Asia seen as attractive both in terms of financial returns and social impact. Equity cheques range from USD 70m to USD 200m, with larger deals expected to mobilise co-investment capital. Earlier-stage deals are considered on a select basis.

Favoured categories include healthcare services, pharmaceuticals, life sciences, medical devices and consumables, and healthcare technology. Quadria also invests selectively in consumer models featuring healthcare products such as Con Cung, Vietnam’s largest mother-and-baby retailer.

Fund III’s first investment came in July with a USD 155m commitment to India-based Maxivision Eye Hospital that highlighted growing confidence around the ability to scale healthcare service chains locally. The deal included an initial USD 75m payment for a significant minority stake and rights to take a controlling position with an additional USD 80m injection upon the achievement of certain milestones.

“People have started realising, especially post-COVID, that scale is going to be very important, not just for getting more patients but for managing operational and supply chain efficiencies. That’s why you’re seeing a real estate grab,” Varma, told AVCJ following the announcement of the deal.

“It makes [hospital operators] more attractive to the government’s universal health insurance, which is growing 20% a year post-COVID. You see it at the bureaucratic level and, more importantly, at the state government level because they’re answerable to their electorates.”

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• Topics
• Southeast Asia
• South Asia
• Fundraising
• Growth
• Buyout
• Healthcare
• Singapore
• Quadria Capital
• Asian Development Bank
• development finance institution