Quadria hits $107m first close

The Singapore-based firm is raising Fund II in a `brutal' fundraising climate, and intends to target healthcare deals in ASEAN and India.

Healthcare-focused firm Quadria Capital has reached a first close on $107 million for its second fund, according to a firm statement. 

Fund II was launched in 2012 and is targeting $300 million, according to PEI’s Research & Analytics division. 

The fund is targeting growth equity investments in scalable mid-sized healthcare companies in South and Southeast Asia, with a deal size of $20 million – $60 million. Quadria focuses on four sub-sectors: healthcare delivery, life sciences, medical technology, and healthcare services. 

The fundraising environment is brutal…Having said that, we believe the market is sophisticated, and savvy LPs are still not moving away from the basics of investing

Amit Varma, managing partner, Quadria

Sixty percent of Fund II will be invested in Southeast Asia, the rest in South Asia, mainly India. 

Amit Varma, managing partner, told Private Equity International that the fundraising environment is “brutal”.

LPs questions have centered around the weakening macro-environment in India, currency depreciation in India and Indonesia, and the general slowdown in fund divestments, particularly in India, he said. 

“Having said that, we believe the market is sophisticated, and savvy LPs are still not moving away from the basics of investing. We have consistently said that the time has come for Asian funds to have specificity, and that healthcare will continue to grow despite the macro doom and gloom we’re hearing about.”

LPs include the International Finance Corp, India-based financial services firm Religare Enterprises, Malaysia-based Goldis and Medtronic, a global medical device developer, which will commit to the fund with capital from its balance sheet, according to Varma.

“All of the LPs are coming in with co-investment rights. We have access to a larger pool of capital beyond the targeted $300 million,” Varma said.

Quadria has offices in Singapore and Dehli, with a team of 11 professionals, which includes two operating partners who are ex-CEOs of healthcare companies. Varma is a former physician who practiced in the US and India. 
 
The firm’s debut fund was had a 2009 vintage and raised INR 4.5 billion (€52 million; $68 million). It is fully invested and has had two partial exits, Varma said. He expects it to be 25 percent divested by year’s end.