New Delhi, March 23 -- Private equity firm Somerset Indus Capital Partners has exceeded the $250 million (around Rs 2,125 crore) target for its third healthcare-focussed fund as it explores new opportunities and themes in the sector.
The Mumbai-based firm announced the final close of Fund III at around $288 million, marking an "oversubscribed" raise backed by both existing and new limited partners (LPs).
Somerset said the fund saw strong participation from global institutional investors, including development finance institutions (DFIs), investment firms, domestic financial institutions, insurance companies, funds of funds, family offices, and impact investors across Europe, the US, and Southeast Asia.
With Fund III, it plans to focus on India's "missing middle", targeting healthcare access gaps in tier II and III markets by investing in scalable healthcare businesses across healthcare delivery, pharmaceuticals, medical devices, diagnostics, and allied sectors.
"India's healthcare ecosystem is undergoing a structural transformation, particularly beyond the metros," said Mayur Sirdesai, partner at Somerset Indus Capital Partners. "Fund III positions us to deepen our presence in underserved markets and partner with entrepreneurs building scalable healthcare platforms."
In September 2025, Somerset said it was nearing the final close of the fund and remained on track to achieve its $250 million target by October.
In an October interaction with VCCircle, executive director Vaibhav Doshi said the firm will continue investing in areas such as hospitals, clinics, pharmaceuticals, and diagnostics, while also taking a more nuanced approach by exploring subsectors within these areas.
Somerset typically invests between $15 million and $40 million per company, with cheque sizes rising to $60-80 million in co-investment deals alongside its LP network.
In December, it onboarded German DFI DEG as an LP, with a commitment of 15 million euros ($17.4 million). Other LPs include the government-backed Self Reliant India Fund (SRI Fund), the US International Development Finance Corporation, and Swiss development finance institution SIFEM.
The firm has already made three investments from the new fund, including Cyrix Healthcare in 2024, a follow-on investment in pharmaceutical packaging firm Printmann Offset, and backing for Bengaluru-based NU Hospitals in December.
Somerset has also clocked a few exits in recent months. In September, it clocked 4x returns on its exit from Jaipur-based Apex Hospitals, after Hyderabad-headquartered PE firm InvAscent invested $30 million via a secondary transaction. Earlier last year, it exited Hexagon Nutrition through a buyback transaction.
Published by HT Digital Content Services with permission from VC Circle.