Somerset Indus closes $288 mn fund, eyes larger healthcare investments

Somerset Indus has closed its third fund at $288 million, exceeding its target, and plans larger investments across healthcare, medtech, and insurance-linked sectors

Healthcare-focused private equity (PE) firm Somerset Indus Capital on Monday said it achieved a final close on its third investment fund with $288 million in commitments. The money is expected to be deployed across a larger investment basket than its previous two funds.

 

A top executive at the PE firm told Business Standard that the third fund exceeded its earlier target of $250 million. The additional capital is expected to enable the fund to support larger and more scalable opportunities.

 

“This includes areas such as preventive care, OPD-linked insurance, healthcare financing, embedded insurance solutions, value-driven generics, medtech innovation, and diagnostic platforms that improve accessibility and standardisation beyond metros,” said Mayur Sirdesai, partner at Somerset Indus Capital Partners.

 

 

While Somerset had invested in seven companies through each of its first two funds, the firm is looking to increase that figure to 10 to 12 companies for the third fund, with ticket sizes ranging between $15 million and $40 million.

 

“Through co-investment syndication alongside our strong limited partner (LP) network, the firm also has the flexibility to participate in significantly larger transactions in the range of $60 million to $80 million,” Sirdesai said.

 

Somerset Indus has already started deploying capital from its third fund, having invested in medtech servicing firm Cyrix Healthcare and pharma packaging company Printmann Offset in December 2024. It has further invested in NU Hospital, a single-speciality hospital chain, in December 2025.

 

Sirdesai said that the fund aims to make two to three additional investments in 2026, supported by a robust pipeline of opportunities already underway. He added that the third fund witnessed participation from a diverse group of global institutional investors, including Development Finance Institutions (DFIs), global investment firms, domestic financial institutions, insurance companies, funds of funds, family offices, and impact investors across Europe, the United States, and South-East Asia.

 

While most of Somerset Indus’s investments have been backed by first-generation entrepreneurs, Sirdesai said that the firm remains open to partnering with all entrepreneurs who demonstrate strong passion and capability.

 

Having assets under management (AUM) to the tune of around $500 million across three funds, Somerset Indus’s earlier investments include hospital chains such as Ujala Cygnus, Sterling Hospitals, and affordable diagnostics providers such as Krsnaa Diagnostics.