Healthcare-focused private equity firm Quadria Capital will look to raise $450 million for its next fund as two deals sealed earlier this month bring its $300 million 2013-vintage Quadria Capital Fund near fully invested, Private Equity International has learned.
Quadria invested in Singapore multi-specialty medical group MWH Holdings and Hanoi-based healthcare provider FV Hospital. Financial details of the transaction were not disclosed but the firm typically invests between $20 million and $60 million in mid-sized healthcare companies in the region focused on healthcare delivery, life sciences, medical technology and healthcare services.
The firm expects to close another two acquisitions from the fund before looking to raise its fourth offering in 2018, Abrar Mir, Quadria founder and managing partner told PEI .
“We're constantly working with our LPs to think about what is the right timing of raising our next fund, but it is most likely 2018 and around $450 million – that's a good benchmark to begin with,” Mir said.
Limited partners in Quadria's fund include Overseas Private Investment Corporation, International Finance Corporation, Religare Enterprises and Abu Dhabi Fund for Development, PEI data show.
Mir declined to provide performance details of its previous funds.
Through Quadria's recent investment, MWH will expand its regional presence and partner with local hospital operators in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Thailand and Vietnam, to provide advanced clinical services within their facilities. Meanwhile for FV Hospital, the firm's investment will be used to create a premier healthcare facility in Vietnam.
In the last two years, the firm has also backed Soho Global Health, an Indonesian pharmaceutical products company, and Medica Synergie, an Eastern India hospital chain, together with DEG and Swedfund. “There's huge interest in healthcare in Asia from a number of sources,” Mir said.
“We see see a lot of country-specific funds as well as pan-Asian players that are focused on the healthcare space, however we tend not compete with them because most of our deals are from proprietary relationships that we've been nurturing for a while,” Mir said.
Other firms that have been active in healthcare in the region include Kuala Lumpur-heaquartered Creador, Mumbai-based Kedaara Capital and Tata Capital.
Mir added that with the scarcity of good healthcare companies in the region, he has observed consistently high multiples in the sector, trading anywhere between 20x and 30x.
“In the private markets, those multiples are not sustainable and it would be very difficult for institutions to make investments,” he said. “Getting access to cutting edge high equality and affordable healthcare is always an issue in Asia, and that is why the sector offers a lot of opportunities for private equity firms.”
Quadria manages over $1.5 billion of assets and is based in Singapore.