New Delhi: Tata Capital Healthcare Fund, the healthcare-focused arm of private equity firm Tata Capital Ltd, on Monday said it has marked the final close of its second fund with commitments of ₹955 crore ($126 million).
The final close amount of Tata Capital Healthcare Fund II is higher than the targeted ₹950 crore, excluding greenshoe option, said Tata Capital in a statement.
Tata Capital’s first healthcare fund had raised ₹411 crore ($70 million) in 2012.
The second fund has received commitments from domestic and international financial and strategic institutions including global pharma and medical equipment companies, and development financial institutions (DFIs) and large European institutions, it said without disclosing their identities.
The new vehicle also received commitment from Self Reliant India (SRI) Fund of the government under the Ministry of Micro, Small and Medium Enterprises, it added.
Visalakshi Chandramouli, Managing Partner, Tata Capital Healthcare Fund, noted in the statement that the new fund will seek to achieve returns by principally taking equity positions in healthcare and life sciences-related companies having significant business exposure to India.
Vamesh Chovatia, Partner of Tata Capital Healthcare Fund, said that the second fund will look to invest across sub-sectors of pharmaceuticals, pharma and allied services, healthcare delivery, medical devices and digital health.
The fund will typically commit $5-$15mn per deal. It will potentially have a larger ticket size along with co-investment support from its LPs.
The second fund has already made commitments to three companies. Earlier this month, the fund led a Series A funding of $10 million in DeepTek Inc in the private equity firm’s first digital healthcare bet.
Last year, the fund invested in a diagnostics firm Atulaya Healthcare and picked up a minority stake in a Chennai-headquartered pharmaceutical company Linux Laboratories.
Tata Capital’s maiden healthcare fund invested in a bunch of companies that include Intas Biopharmaceuticals, Novalead Pharma, and Amanta Healthcare.
Other investments from the debut fund include Lokmanya Hospitals, dialysis services provider Sandor Nephro Services Pvt Ltd and Shriji Polymers India Ltd. It has exited Sandor and Shriji.
India has a few other healthcare-focused private equity and venture capital funds including Quadria Capital, InvAscent, Somerset Indus Capital Partners, Asian Healthcare Fund and Alkemi Growth Capital.