Quadria Capital closed its Fund III at $1.07 billion, exceeding its target of $800 million, the healthcare-focused private equity (PE) firm announced on Tuesday.

Key Highlights

• The oversubscribed fund comprises $954 million in primary commitments and $114 million in co-investment capital.
• Investments target single-specialty hospitals, diagnostic chains, medical devices, and pharmaceutical manufacturing, including APIs and CDMOs.

The total amount raised includes $954 million in primary commitments and $114 million in co-investment capital. According to the Singapore-based firm, another $300 million in co-investments are expected later, bringing the total capital available to up to $1.3 billion.

The amount raised is nearly 60% more than the company's second plan, which received $600 million in 2020, making III the largest dedicated healthcare PE fund in South and Southeast Asia.

"Asia's healthcare sector is at a critical juncture, and it will remain in the spotlight in 2025, particularly with investment interest in India in areas such as single specialty hospitals, diagnostic chains, medical devices, and pharmaceutical manufacturing," said Amit Varma, cofounder and managing partner at Quadria Capital.

He stated that higher healthcare consumption, "cost-efficiency initiatives, and technology integration" will drive growth in the sector.

Fund III attracted existing investors, who increased their commitments by an average of 80%, as well as global institutions from North America, Europe, the Middle East, and Asia. New backers included sovereign wealth funds, insurance companies, and family offices, primarily from West Asia and India.

Fund III is already nearly 40% deployed, with investments in Aragen Life Sciences, NephroPlus, and Maxivision. The company stated that two additional transactions in Southeast Asia are expected to close soon.

Quadria was founded in 2012 and currently manages over $4 billion in assets across 27 companies. With Fund III, the firm intends to build a portfolio of approximately ten market-leading healthcare businesses through majority and minority stakes, as well as co-investment.