Somerset Indus Capital Partners nears $250 million close for 3rd healthcare fund

Somerset

Somerset Indus Capital Partners is nearing the final close of its third fund, targeting around $250 million, as the Mumbai-based private equity firm continues to attract strong global interest.

The fund, which focuses on expanding healthcare access in underserved tier 2 and 3 cities, has drawn commitments from a diverse mix of institutional investors, including development finance institutions from Europe and the US, marquee European firms, a leading Indian financial bank, and impact-focused investors from Southeast Asia, the company said in a statement on September 9.

The firm’s “capital for change” philosophy, centered on backing scalable and affordable healthcare models, has resonated with both existing and new limited partners.

“Fund III is not just the next fund; it is the evolution of our journey,” said Avinash Kenkare, partner at Somerset. His colleague, Mayur Sirdesai, added that the fund is “well positioned to go beyond” its initial target, citing India’s healthcare inflection point and the firm’s role in shaping the transformation.

Somerset expects final close by October, with a large existing investor likely to join in, further strengthening its LP base, the statement said.

The firm’s previous funds have delivered strong returns, with Fund I achieving a 4x distributed to paid-in (DPI) capital and Fund II approaching exits. Notable investments include Ujala Cygnus Hospitals and Krsnaa Diagnostics, which yielded a 12x return to become India’s largest provider of affordable diagnostic services.

With assets of around $500 million across three funds and 15 portfolio companies, Somerset partners with first-generation entrepreneurs to catalyse innovation in healthcare delivery, diagnostics, pharmaceuticals, and medical devices.