Latest news with #QuadriaCapital
Mint
26-06-2025
- Business
- Mint
Samara sends a signal of confidence in a tight fundraising climate
Mumbai: As it readies for the final close of its third fund in a cautious environment, Samara Capital is poised to join a small league of investment firms in India that have fully returned money to investors with gains. The private equity firm plans to wind down its 11-year-old second fund over the next three months and will fully return the proceeds from its exits to its limited partners, said a person familiar with the matter, speaking on the condition of anonymity. 'The second fund has already exited nine out of 10 investments and expects to return the balance amount by September," the person cited above said, adding that the tenth exit will happen over the next month. The fund has clocked a 3.5x gross multiple on invested capital, with a 25% internal rate of return, according to the person. Samara declined to comment. Limited partners (LPs) or investors are increasingly looking at the track record of general partners, who manage these funds, before committing more money. That has prompted investment firms in India to consider cashing out some of their bets to return money to their LPs. Quadria Capital returned its first fund of a similar vintage in 2023-end, Mint reported at the time. Samara raised upwards of $300 million in 2014 for its second fund, but the total amount was higher because of co-investments by LPs. 'Samara didn't lose money on any of the investments and the continuation fund has further enabled them to get quicker exits," the person quoted earlier added. A continuation fund allows managers to hold on to investments for longer by transferring assets from a fund nearing closure. Some of Samara's prominent exits from the second fund include the sale of Spoton Logistics to Delhivery; stake sale in AIG Hospital to Quadria Capital; sale of Lotus Surgicals to Tube Investments and Premji Invest; sale of stake in Oaknet Healthcare toEris Lifesciences. It also offloaded stakes in medical devices firm Sahajanand Medical Technologies (SMT) Ltd, staffing firm First Meridian Business Services Pvt. Ltd and biryani restaurant Paradise Food Court Pvt. Ltd through a $150 million continuation fund led by TR Capital in 2023. 'Funds of the 2014 vintage have, in many cases, traversed complex economic cycles and regulatory landscapes," said Ketan Mukhija, a senior partner at Burgeon Law, said. 'Those that have successfully returned capital demonstrate effective governance, strategic exits, and a commitment to investor alignment—hallmarks of well-managed alternative investment vehicles." To date, Samara has deployed about ₹10,000 crore across all its funds. The India-focused private equity firm typically invests in mid-market companies poised for growth, focusing on consumer/retail, healthcare/pharma, financial services, and business services/technology sectors. Across the three funds, the firm has made over 25 acquisitions for its portfolio companies, including roll-ups. A roll-up involves acquiring and merging smaller companies in the same sector to create a larger consolidated entity. Bain Capital and Carlyle, too, have used this strategy to consolidate their acquisitions in auto components and pharmaceuticals. Over the years, Samara has seen its average ticket size increase from ₹300-700 crore, including co-investments in the second fund, to ₹500-1500 crore in the third fund. The company is currently deploying from its third fund, which has a target size of ₹2,000 crore with an additional green shoe option of ₹3,000 crore, according to a Crisil report published in July last year. The credit rating agency assigned Fund Management Grading – 1 to Samara Alternate Investment Fund III India. On a 1-5 scale, it describes 1 as 'very strong'. Crisil said Samara's offshore funds have delivered a mixed bag, with the first fund generating weak performance despite an extension of four-and-a-half years. The investment firm's first AIF registered with Sebi has drawn down approximately one-third of its total commitments and has performed better than most of its peers in terms of distribution to paid-in capital (cash returned to limited partners) as of September 2023, the credit rating firm said.
Economic Times
17-06-2025
- Business
- Economic Times
HealthQuad targets raising $300 million third fund to back healthcare tech startups
ETtech (L-R) Sunil Thakur, Abrar Mir and Amit Varma, cofounders, HealthQuad Healthcare venture capital firm HealthQuad is raising $300 million (Rs 2,527.5 crore) for its third India-focussed fund. The firm, backed by Quadria Capital, an Asia-focussed private equity fund specialising in healthcare, plans a corpus of $200 million with an additional $100 million greenshoe option to fund healthcare enterprise innovation startups in India. Founded in 2016 under the Quadria Group, HealthQuad has focussed on backing tech-enabled healthcare models at the early-growth firm's first two funds backed over 18 companies, including Medikabazaar, THB, Wysa, Ekincare, Redcliffe Labs, GoApptiv, and Strand Life Sciences. This announcement comes in the wake of a split between HealthQuad's leadership team and Kois, the Belgian firm that co-founded HealthQuad alongside Quadria Capital. Following the departure of a general partner, the individual has launched a new healthcare venture capital fund of similar size, named HealthKois. 'We continue to own funds I and II fully under Quadria,' Sunil Thakur, cofounder and investment committee member at HealthQuad, told ET. The new fund will focus on companies solving operational challenges for hospital chains. "We are looking to fund 13-15 companies in this fund," said fund will tap into Quadria Group's extensive Asia network and institutional relationships to drive growth in portfolio company Quadria Capital recently raised $1.07 billion for its third fund, demonstrating strong investor appetite for the group's strategy.
Time of India
17-06-2025
- Business
- Time of India
HealthQuad raises $300 million for third India-focussed healthcare fund
Healthcare venture capital firm HealthQuad is raising $300 million (Rs 2,527.5 crore) for its third India-focussed fund. The firm, backed by Quadria Capital , an Asia-focussed private equity fund specialising in healthcare, plans a corpus of $200 million with an additional $100 million greenshoe option to fund healthcare enterprise innovation startups in India. Founded in 2016 under the Quadria Group, HealthQuad has focussed on backing tech-enabled healthcare models at the early-growth stage. The firm's first two funds backed over 18 companies, including Medikabazaar, THB, Wysa, Ekincare, Redcliffe Labs, GoApptiv, and Strand Life Sciences. This announcement comes in the wake of a split between HealthQuad's leadership team and Kois, the Belgian firm that co-founded HealthQuad alongside Quadria Capital. Following the departure of a general partner, the individual has launched a new healthcare venture capital fund of similar size, named HealthKois . 'We continue to own funds I and II fully under Quadria,' Sunil Thakur, cofounder and investment committee member at HealthQuad, told ET. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories The new fund will focus on companies solving operational challenges for hospital chains. "We are looking to fund 13-15 companies in this fund," said Thakur. The fund will tap into Quadria Group's extensive Asia network and institutional relationships to drive growth in portfolio companies. Parent company Quadria Capital recently raised $1.07 billion for its third fund, demonstrating strong investor appetite for the group's strategy.
Business Times
09-06-2025
- Business
- Business Times
Asia healthcare assets risk overvaluation as private investors scoop them up
[SINGAPORE] As private equity (PE) investors pour money into Asian healthcare, some observers are concerned that this sector could soon overheat. Some recent deals this year include KKR's US$400 million purchase of a 54 per cent stake in India's Healthcare Global Enterprises in February. In Singapore, another American PE firm TPG took Catalist-listed nursing operator Econ Healthcare private in a deal worth nearly S$88 million. When the proposed transaction was announced in February, the offer price represented a 20 per cent premium to Econ's last traded share price on Jan 14. 'We are not the only ones to see the opportunity of healthcare in Asia, and, as a consequence, valuations can be high,' Abrar Mir, co-founder and managing partner of healthcare-focused PE firm Quadria Capital, told The Business Times. Other factors driving investors to the healthcare sector – perceived as defensive, and so able to withstand the ups and downs of economic cycles – is the ongoing macroeconomic uncertainty and volatility in global financial markets. This is particularly so in Asia, where investors have been diversifying away from China in the last few years, to avoid being caught in the cross hairs of the nation's tensions with the United States. As PE firms and their investors focus on acquiring companies independent of China, more deals have been transacted in Japan, South Korea and India, where the demand for healthcare and related services is strong and largely unaffected by tariffs. 'Japan has always been a stable healthcare market, and particularly because of (its) demographics and medical needs,' said David Braga Malta, thematic health principal at Pictet Alternative Advisors, to BT. 'We saw some of the mid-sized Japanese pharma companies being very acquisitive in the recent months and years... And of course, we saw the boom in the IPO (initial public offering) markets in India last year.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Asia's appeal even drew European PE investors to buy South Korean assets for the first time in 2024, he added. Last September, France's Archimed spent US$742 million buying Jeisys Medical, a South Korean developer of aesthetic medicine devices. Like shopping in Louis Vuitton 'One of the key things that I always say to my investors is that... investing in healthcare in Asia is like shopping in Louis Vuitton. So, as an investor, we have to navigate that, be careful not to overpay,' said Quadria Capital's Mir. According to a Bain & Co report, global PE deal value in the sector surged last year to an estimated US$115 billion – the second highest on record. Bain added that PE firms continue to invest in healthcare in the Asia-Pacific, where deal values have been steadily rising since 2016. Industry participants named India as the country attracting the most number of healthcare PE investors. An ageing population, rising incidence of chronic disease and growing awareness of preventive care, combined with the opening up of its insurance market to foreign investment, are making India stand out. Bain estimated that the country made up 26 per cent of the 62 deals transacted in the Asia-Pacific last year. PwC said its health industries practice in India hit a double-digit compound annual growth rate in the past few years as well. But Ling Tok Hong, deals and private equity leader at PwC, cautioned that 'this continued focus on the India market could make it more susceptible to overvaluation if investors are not cautious'. South-east Asia's healthcare sector is also attracting PE investors, leading to 'unprecedented valuations' of Ebitda multiples in their 20s, noted Ling. He was referring to earnings before interest, taxes, depreciation and amortisation. Room for growth; returns still strong Despite the rising valuations in Asia's healthcare sector, market participants point out that there is still room for growth, a key factor backing the higher valuations in the first place. The sector offers attractive long-term growth prospects as the supply of quality healthcare assets in the region is not growing quickly enough to meet demand. In markets such as South-east Asia, 'the number of large, institutionally ready platforms is still limited. This scarcity has helped sustain high entry multiples in recent years', said Alex Boulton, partner and Asia-Pacific lead for healthcare and life sciences private equity at Bain. He pointed out that South-east Asia's healthcare sector relies heavily on private players. For instance, the private sector accounts for roughly half of all hospital beds in Indonesia and the Philippines. 'That structural dynamic creates an enduring role for private capital in expanding and upgrading healthcare infrastructure.' Market participants emphasise that Asian healthcare is not in bubble territory. Boulton pointed out that even with rising valuations, healthcare PE in Asia is still delivering strong returns. Bain's analysis shows that from 2018 to 2023, the median multiple on invested capital (MOIC) for exited healthcare deals in the region was approximately 2.6 – meaning that a US$1 million investment generated a return of US$2.6 million. This compares with the global median MOIC of around two. 'That speaks to the sector's ability to compound value through growth and operational improvement, even in a more expensive entry environment,' noted Boulton. That said, while returns are likely to remain strong in the future, the median MOIC may not be sustained at these levels, he added. Thus, market players said, investors will need to have a clear plan to create meaningful impact and value over the life of their investments.
Mint
30-05-2025
- Business
- Mint
HealthQuad to raise $300 million third fund amidst reorganization
HealthQuad, the early to growth stage healthcare-focused investor backed by private equity firm Quadria Capital, is looking to raise its third fund of around $300 million. This new fund comes at a time when there is a split in the general partners (GPs) that manage HealthQuad, people with knowledge of the development said. Also Read | Quadria Capital-backed Maxivision on expansion spree, eyes IPO by 2027 'The firm has refiled its papers with the markets regulator to raise the third fund. The refile shows only Sunil Thakur, Amit Varma and Abrar Mir, the founders of Quadria as the GPs of the firm," one of the persons cited above said. In 2015, when HealthQuad was set up to invest in early-stage healthcare opportunities in India, the three partners had roped in Charles-Antoine Janssen as the fourth founder and appointed him as chief investment officer. 'Now these three founders have taken back control. Janssen is parting ways to start his own fund—HealthKois," the person said. Two top executives at HealthQuad—Pinak Shrikhande and Ajay Mahipal—are also leaving with Janssen. Also Read | Quadria to invest half its India capital in climate-related healthcare solutions HealthQuad and Janssen spokespersons did not respond to emailed queries seeking comments. Mahipal, too, did not respond to messages on LinkedIn. Shrikhande could not be reached for comment. As per Janssen's LinkedIn profile, apart from being associated with HealthQuad, he cofounded KOIS s.a. with François de Borchgrave, a global impact investing firm (blended finance structuring and investment management) active in healthcare, education/skilling and living environments. He is a member of the investment committee of two other KOIS funds: Tara IV (India VC/PE healthcare and social entrepreneurship focus) and Impact Expansion (EU/PE Impact focus). Janssen is based in Belgium. 'The commercials of the first two funds will continue to remain the same. From the third fund onwards, the firm will have only three partners," the second person added. Janssen is likely to launch his firm, which will source deals in the early to growth stage in India. Though the exact strategy is not clear at this point in time. HealthQuad raised its first fund of ₹75 crore in 2016. It has yet to exhaust its second fund, which has a corpus of $162 million. Some of its portfolio companies include the Asian Institute of Nephrology and Urology (AINU), HealthifyMe, Medikabazaar, THB, Impact Guru, Ekincare and Stanplus. The reorganization at HealthQuad comes as the parent company, Quadria Capital, announced the closing of its third fund with $1.07 billion in total commitments. The oversubscribed fundraise comprises over $954 million in primary commitments and $114 million in committed co-investment capital. An additional $300 million co-investment capacity is anticipated over the course of the investment phase, bringing total committed capital to approximately $1.3 billion upon full deployment, Mint reported earlier this week.
