Mumbai: Somerset Indus Capital Partners has successfully raised its third fund, Fund III, at around USD 288 million (about Rs 2,448 crore). This is higher than its initial target of USD 250 million, showing strong investor interest. The fund was oversubscribed, meaning demand from investors was higher than expected.
Wide Global Investor Participation
Fund III received support from a wide range of global investors. These included development finance institutions, global investment firms, Indian financial institutions, insurance companies, family offices and impact investors. Investors came from regions such as Europe, the United States and South-East Asia.
The company said that many existing investors reinvested, while several new investors also joined, showing continued trust in its strategy.
Focus On Healthcare In Smaller Cities
Somerset will use this fund to invest in healthcare businesses across India, especially in Tier II and Tier III cities. The focus is on improving access to affordable and quality healthcare for the “missing middle” — people who are not fully covered by premium healthcare systems.
The fund will invest in areas like hospitals, pharmaceuticals, medical devices, diagnostics and related sectors.
Investment Strategy And Size
Somerset usually invests between USD 15 million and USD 40 million (Rs 127 crore to Rs 340 crore) in each company. However, with co-investment support from its investor network, it can take part in larger deals of up to USD 60–80 million.
The company plans to support new areas such as preventive healthcare, OPD-linked insurance, healthcare financing, MedTech innovation and diagnostics.
Early Investments And Performance
From Fund III, Somerset has already invested in three companies — Cyrix Healthcare, Printmann Offset and NU Hospitals. These investments are already showing good early performance.
Its previous funds have also done well. Fund I delivered about 4 times returns to investors, while Fund II has started exiting investments, with its first exit giving nearly 4 times returns.
Growth With Impact
The firm said its goal is to combine financial returns with social impact. By investing in healthcare businesses, Somerset aims to improve access while also growing its portfolio.
With Fund III, the company strengthens its position as a key healthcare-focused private equity investor in India.
