Singapore-headquartered healthcare-focused investor Quadria Capital has commenced the distribution of profits along with the principal from its inaugural fund to its limited partners or investors, according to a VCCircle report.
The firm targets the end of 2023 as the expected timeline for the completion of this process.
Quadria Capital’s inaugural fund’s target corpus was $300 million, although it eventually invested $450 million, including co-investments. According to the news report, there are two assets left, and the firm intends to complete the exit of the fund by the end of this calendar year.
The fund is tracking in NAV closer to 2.9x cash-on-cash (in US dollars), Amit Varma, managing partner, Quadria Capital, said in the news report.
Varma declined to divulge the name of the assets that Fund 1 is yet to exit from. The portfolio included Concord Biotech, which went public in August, with Quadria selling its 20% stake. Similarly, it exited 30% in AIG Hospitals last year, an investment made from both Fund 1 and Fund 2, the report added.
The firm closed its second fund at $595 million in 2020 and its first fund at $300 million in 2014.
The PE firm is seeking to raise $800 million, with a hard cap of $1 billion, for its third fund focused on healthcare subsections in developing Asia, excluding China.
DEG, the investment arm of German state-owned development bank KfW, has committed to invest $35 million in Quadria Capital Fund III.
In January, International Finance Corporation, a member of the World Bank Group, proposed to invest up to $40 million Quadria Capital Fund III. The Asian Development Bank and the US International Development Finance Corporation (DFC) also jointly proposed to invest $100 million in the third fund.
In a disclosure, DEG said the equity investment fits well into its objective of providing risk capital and value-add to a PE fund and thus indirectly supporting small and medium-sized enterprises.
The third fund plans to invest across a number of developing countries in both South Asia and Southeast Asia. Varma earlier told DealStreetAsia that the firm’s strategy is to deploy capital in the ratio of 50:50 in both Southeast Asia and India.
Ticket sizes will range between $50-120 million per investee, DEG disclosed.
“Quadria III would support private equity investments which are relatively limited in the region due to the low penetration of private equity funds. This helps to increase liquidity and the sophistication of local financial markets,” DEG earlier said.
To date, Quadria’s investments have reached 34 million patients, of which 4 million individuals come from underprivileged communities. Quadria also has 8,634 hospital beds and 9,497 doctors and clinical staff under the management of its network.