New Delhi, Sept. 9 -- Healthcare-focused private equity firm Somerset Indus Capital Partners said Tuesday it is in the final stages of closing its third fund, which has a target corpus of around $250 million (about Rs 2,200 crore).
"Fund III is fast progressing toward its initial $250 million target and is well positioned to go beyond, a clear vote of confidence from global investors," said Mayur Sirdesai, partner, Somerset Indus Capital Partners.
Somerset said that the fund remains on track to achieve a final close by October 2025, potentially exceeding its target. A large existing investor is also expected to join at the final close, it said.
The PE firm said that the documentation completion is underway, and that it has attracted strong participation from both existing and new limited partners, reflecting continued confidence in the firm's 'Capital for Change' investment philosophy.
The fund has attracted commitments from a diverse mix of institutional investors. These include several development finance institutions from Europe and the US, a global investment company along with marquee European institutions, and one of India's largest financial banks as a domestic anchor. It has also drawn support from insurance companies, funds of funds, family offices, and impact investors across Europe and Southeast Asia.
The fund hit its first close in August last year after securing $86 million. VCCircle previously reported that its domestic limited partners include the government-backed Self-Reliant India Fund (SRI Fund). Its overseas LPs include the US International Development Finance Corporation and the Swiss development finance institution SIFEM.
With Fund III, Somerset is continuing its focus on India's "missing middle" by supporting healthcare businesses aimed at making services more affordable and accessible in Tier II and Tier III markets.
"We are scaling proven models into India's underserved Tier II and Tier III markets, where the need and opportunity are greatest," said Avinash Kenkare, partner, Somerset Indus Capital Partners.
Somerset claims that its Fund I and Fund II have shown strong performance, with the former achieving a distribution to paid-in (DPI) ratio of 4.0x and the latter now approaching exits.
With an AUM of around $500 million across three funds, the firm has invested in 15 portfolio companies. Some of its previous investments include Ujala Cygnus Hospitals and Krsnaa Diagnostics, on which the fund generated a 12x return.
Somerset makes growth equity investments ranging from $15 million to $40 million in companies across healthcare delivery, pharmaceuticals and life sciences, medical devices, diagnostics, and related sectors.
Published by HT Digital Content Services with permission from VC Circle.