Healthcare-focused Quadria seeks $500m for fourth fund

The mid-market firm is targeting to achieve a first close by the fourth quarter of 2018.

Quadria Capital, the Singapore-based healthcare-focused private equity firm, is back on the fundraising trail with a $500 million target for its fourth vehicle, the firm has told Private Equity International.

It raised $300 million in June 2015 for Quadria Capital Fund I, according to PEI data. Fund I eventually had an investment capacity of $425 million, after the firm raised $125 million in additional co-investment capital, Amit Varma, managing partner at Quadria, told PEI.

Similar to its predecessor, capital raised from the Quadria Capital Fund II will be invested in South Asia and South-East Asia across four verticals – healthcare delivery, life sciences, medical technology and consumables, and retail healthcare.

The firm is set to hold a first close on Fund II by the fourth quarter of 2018.

It expects re-ups from existing LPs which include development finance institutions, institutional investors, family offices and strategic capital from global healthcare companies, Varma said.

Limited partners in Quadria’s previous fund include the International Finance Corporation and Abu Dhabi Fund for Development, according to PEI data.

Varma noted that the firm’s equity cheque size has increased in the last few years as the healthcare market dynamics change. “When we first came to the market we were putting between $30 million and $50 million to work. Now our median size will be about $75 million of equity. That’s how the market is evolving in Asia. Companies’ top-line growth is between 15 and 20 percent,” he noted.

Meanwhile, Fund I has been fully deployed across nine deals. These include the Bangalore-based bioinformatics and genomic profiling company Strand Life Sciences, Malaysian diagnostics provider Lablink, Singapore-based multi-speciality care group MWH Holdings and Hanoi-based FV Hospital.

Quadria manages more than $1.5 billion in assets and specialises in growth capital investments in the small to mid-cap market.