ASEAN health care start-ups? Singapore’s private equity firm, Quadria, says funding situation brutal

English: Primary targets of United States Army...

English: Primary targets of United States Army Air Forces B-29 bombers operating from bases in India during World War II (Photo credit: Wikipedia)

ASEAN has been known a a global hub for medical tourism. Within that environment, many health care start-up got its birth, growth and maturity, often with the help of private equity firm. But has the ASEAN medical and health care scene, lost its shine? Private Equity International reports, “Quadria hits $107m first close. The Singapore-based firm is raising Fund II in a `brutal’ fundraising climate, and intends to target healthcare deals in ASEAN and India. Healthcare-focused firm Quadria Capital has reached a first close on $107 million for its second fund, according to a firm statement. Fund II was launched in 2012 and is targeting $300 million, according to PEI’s Research & Analytics division. The fund is targeting growth equity investments in scalable mid-sized healthcare companies in South and Southeast Asia, with a deal size of $20 million – $60 million. Quadria focuses on four sub-sectors: healthcare delivery, life sciences, medical technology, and healthcare services. The fundraising environment is brutal…Having said that, we believe the market is sophisticated, and savvy LPs are still not moving away from the basics of investing.” Sixty percent of Fund II will be invested in Southeast Asia, the rest in South Asia, mainly India. Amit Varma, managing partner, told Private Equity International that the fundraising environment is “brutal”. LPs questions have centered around the weakening macro-environment in India, currency depreciation in India and Indonesia, and the general slowdown in fund divestments, particularly in India, he said. “Having said that, we believe the market is sophisticated, and savvy LPs are still not moving away from the basics of investing. We have consistently said that the time has come for Asian funds to have specificity, and that healthcare will continue to grow despite the macro doom and gloom we’re hearing about.” LPs include the International Finance Corp, India-based financial services firm Religare Enterprises, Malaysia-based Goldis and Medtronic, a global medical device developer, which will commit to the fund with capital from its balance sheet, according to Varma. (Read More)

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