QUADRIA Capital, a Singapore-based private equity (PE) firm focusing on the healthcare sector in Asia, on Wednesday said it has closed its second fund at US$595 million, exceeding its initial target of US$400 million.
Investors include global asset managers, pension funds, sovereign wealth funds, insurance, healthcare corporates and development finance institutions across the US, Europe and Asia, the company said.
Abrar Mir, managing partner of Quadria Capital, noted that Asia's healthcare market is expected to reach US$4.2 trillion in the next five years, surpassing that of the US and Europe combined today. "It will continue to grow at 12 per cent annually, compared to 5 per cent growth globally," he said.
The Quadria Capital Fund II has already made two investments into global healthcare businesses. These include AKUMS Drugs & Pharmaceuticals; India's largest pharma CDMO (contract development and manufacturing organisation) company; as well as the Asian Institute of Gastroenterology, the world's largest gastric sciences hospital, in partnership with the Mayo Clinic Network.
"We are pleased to be supported by like-minded global investors to deliver sustainable impact beyond compelling financial returns," added Mr Mir.
Quadria Capital currently manages total active capital of over US$1 billion, and has made over 20 investments in healthcare businesses across Asia, the company said.
Amit Varma, another managing partner at Quadria Capital, noted: "Countries in South and South-east 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 per cent of the global expenditure, and this severe underfunding of public health expenditure is challenging their development.
"This compounds the other issues faced by these regions including demographic changes such as fast-growing and ageing populations, exposure to chronic diseases, as well as increased exposure to infectious diseases – including Covid-19 – that have been spreading exponentially recently."
Last October, Quadria Capital announced that it had secured a US$65 million three-year revolving facility from ING, through which the PE firm had its borrowings' interest rate pegged to its sustainability performance. This made it the first in the world to lock in financing for PEs, that is tied to sustainability improvement.