Somerset may close third healthcare fund worth $250 mn by October

The final close is expected next month, with the fund on track to potentially exceed its target.

Healthcare-focused private equity (PE) firm Somerset Indus Capital may get a final close for its third investment fund by October this year, with a top executive of the firm saying that the fund is expected to cross commitments worth $250 million.

 

“We are pretty much signing up there. We may cross it by about 10 per cent, making the fund reach $275 million in commitments,” Mayur Sirdesai, partner at Somerset Indus Capital Partners, told Business Standard. Somerset generally invests in first-generation entrepreneurs through growth equity cheques of $15 million to $40 million, in domains such as healthcare delivery, pharmaceuticals and life sciences, medical devices, diagnostics and related sectors.

 

With the firm having assets under management (AUM) to the tune of around $500 million across three funds, its investments include hospital chains such as Ujala Cygnus, Sterling Hospitals and affordable diagnostics providers such as Krsnaa Diagnostics.

 

Sirdesai added that with Fund III, Somerset would remain firmly focused on backing innovative businesses that deliver affordable, accessible, and quality healthcare to Tier-II and -III markets. The firm has already started deploying capital from the third fund, having invested in Cyrix Healthcare and Printmann Offset in December 2024. 

 

While Somerset had invested in seven companies, each through its first two funds, the firm is looking to increase that figure to 10 companies for the third fund.

 

Sirdesai added Fund III has drawn participation from both existing and new limited partners (LPs), including several European and American Development Finance Institutions (DFIs), a global investment company, marquee European institutions and one of India’s largest financial banks.

 

Other participants include insurance companies, funds of funds, family offices and impact investors from Europe and Southeast Asia.

 

It is also evaluating a third investment in the coming months, which could be a single-speciality hospital group.

 

“We will probably do a fourth one by the first quarter of next year, and then maybe two more deals, one in the middle of next year and one towards the end of next year,” Sirdesai said.

 

The firm added that a large existing investor is also expected to join at the final close, further strengthening the fund’s base of Marquee Limited Partners.