Somerset focused on addressing healthcare needs across India
Somerset Indus Capital Partners announced that Fund III is in the final stages of its close, nearing about US$250 million, with documentation completion underway.
The Fund has attracted strong participation from both existing and new Limited Partners, reflecting continued confidence in Somerset’s ‘Capital for Change’ investment philosophy, Somerset Indus said on 10 Sept.
With Fund III, Somerset remains firmly focused on addressing healthcare needs across India’s “missing middle” by backing innovative businesses that deliver affordable, accessible and quality healthcare to Tier II and Tier III markets https://www.bseindia.com/.
This differentiated strategy has resonated strongly with global investors, and led to several impact-aligned LPs recognising the demographic transformation underway in India’s underserved regions https://www.nseindia.com/.
The Fund has seen commitments from a diverse set of institutional investors, including:
• Development Finance Institutions (DFIs): several DFIs from Europe and the US
• Global Institutions: A global investment company and marquee European institutions
• Domestic Anchors: One of India’s largest financial banks
• Other Investors: Insurance companies, funds of funds, family offices, and impact investors from Europe and Southeast Asia
“Fund III is not just the next fund; it is the evolution of our journey. We are scaling proven models into India’s underserved Tier II and Tier III markets, where the need and opportunity are greatest,” said Avinash Kenkare, Partner, Somerset Indus Capital Partners http://commerce.gov.in.
“Fund III is fast progressing toward its initial US$250 million target and is well positioned to go beyond, a clear vote of confidence from global investors. India is at a healthcare inflection point, and with Fund III, Somerset is positioned to shape this transformation, deepening access, creating impact and sustainable value for all stakeholders, while delivering on our ‘Capital for Change’ philosophy,” added Mayur Sirdesai, Partner, Somerset Indus Capital Partners.
Looking ahead, the Fund remains on track to achieve a potential final close by October 2025, potentially exceeding its target. A large existing investor is also expected to join at the final close, further strengthening the Fund’s base of Marquee Limited Partners.
Fund I and Fund II have demonstrated strong performance. Fund I has achieved a ~4.0x DPI, while Fund II is now approaching exits.
Notable investments include Ujala Cygnus Hospitals, which expanded affordable care across North India, and Krsnaa Diagnostics, a 12x investment that has grown into India’s largest provider of affordable diagnostic services. Fund III builds on this foundation, targeting India’s vast “missing middle.”
Somerset has consistently partnered with visionary entrepreneurs, often as their first institutional backers, to build scalable healthcare models.
Somerset Indus Capital Partners is an impact-aligned private equity firm that invests in healthcare businesses delivering high-quality, affordable, and accessible care across India, with focus on the “Missing Middle.”
Capital for Change reflects our conviction that creating meaningful impact and generating strong financial returns are not only compatible but mutually reinforcing. Guided by this philosophy, Somerset partners with first-generation entrepreneurs through growth equity investments ranging from US$15 to US$40 million, leveraging deep domain expertise to support companies across healthcare delivery, pharmaceuticals and life sciences, medical devices, diagnostics, and related sectors.
With an AUM of around US$500 million across three funds, the firm has invested in 15 portfolio companies across various sectors, driving transformation and accelerating growth.
Somerset’s deep sector expertise has helped the portfolio companies catalyse innovation and enhance patient outcomes, while delivering growth. Their approach to responsible investing is built on a proprietary framework that aligns with global ESG standards while creating sustainable value. Fiinews.com
