New Delhi, Aug. 24 -- InnoVen Capital, a venture debt firm backed by Singapore's state-owned investment company Temasek, is raising a new healthcare-focussed fund that will invest across India, Southeast Asia and China. The firm has also tapped an offshore limited partner (LP), VCCircle has learnt.

The venture debt provider, which previously extended debt financing to startups through a non-banking financial company (NBFC) before launching its Category-II alternative investment fund (AIF) in 2021, is targeting $200 million (Rs 1,914 crore) for InnoVen Healthcare Fund I. The vehicle has a hard cap of $250 million.

InnoVen did not respond to VCCircle's queries till the time of publication.

Further, the International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group that invests across venture capital, growth, private equity, and debt transactions, is considering an equity investment in the vehicle. IFC is likely to infuse $15 million as an LP.

The closed-end fund will be managed by InnoVen Capital SEA Pte Ltd. Its parent, InnoVen Capital Pte Ltd, is a 50:50 joint venture between Seviora Holdings Pte Ltd, a wholly-owned investment platform of Temasek Holdings, and United Overseas Bank Ltd, a Singapore-listed bank.

The latest development comes five years after InnoVen launched its debut India-focussed venture debt fund, which targeted a corpus of Rs 1,000 crore with a greenshoe option of an additional Rs 1,000 crore. The fund marked its first close in 2021. Unlike the new vehicle, it followed a sector-agnostic investment approach.

Through the new fund, InnoVen plans to make healthcare-focussed growth investments and provide non-dilutive growth capital to high-growth companies across India, Southeast Asia, and China. The firm expects its Chinese portfolio companies to use the capital to support expansion into Southeast Asia and other emerging markets. Within healthcare, the fund will focus on pharmaceuticals and biotechnology, medical technology, and health services.

Over the years, InnoVen has invested $1.5 billion across more than 400 companies through over 650 transactions across India, China, Singapore, and Southeast Asia.

Published by HT Digital Content Services with permission from VC Circle.