Singapore-based Quadria Capital raises $595 million fund for healthcare-focused deals

KUALA LUMPUR (Reuters) - Singapore-based private equity firm Quadria Capital has closed its second fund at its maximum of $595 million, it said on Wednesday.

The firm, which focuses on healthcare investments around South and Southeast Asia, said in a statement that the amount raised exceeded its initial $400 million target.

Investors in the Quadria Capital Fund II included global asset managers, pension funds, sovereign wealth funds, insurance, healthcare corporates and development finance institutions across the United States, Europe and Asia. The firm did not give any further details about the investors.

Quadria plans to deploy the freshly raised funds within eight years, but it has the option to extend that to 10 years. It aims for exits from investments as quickly as five years, it also told Reuters.

Quadria has already invested in two healthcare companies through the new fund, one of which is AKUMS Drugs & Pharmaceuticals, India’s largest pharmaceutical company.

Another investment - in the Asian Institute of Gastroenterology - was made in partnership with the Mayo Clinic Network.

Quadria manages total active capital of more than $1 billion, it said, and has made more than 20 investments that have cumulatively treated over 17.5 million patients and managed 2,500 hospital beds.

Managing partner Dr Amit Varma said severe underfunding of public healthcare has hampered the sector’s development.

“Countries in South and Southeast Asia are home to nearly a third of the world’s population and shoulder almost half of the world’s diseases burden. However, they receive just 5% of the global expenditure,” Varma said.

Quadria said Asia’s healthcare market is expected to reach $4.2 trillion in the next five years, exceeding the current combined value of those in the United States and Europe and growing at an annual rate of 12% versus 5% globally.

The firm’s other investments include Indonesia’s Soho Global Health, Malaysia’s Lablink and India’s Medica Synergie and Strand Life Sciences.

Reporting by Liz Lee; Editing by Kirsten Donovan and Tom Hogue