HealthQuest Capital gets $440M to invest in growth-stage healthcare companies

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The other day, HealthQuest Capital announced the close of HealthQuest Partners III, L.P. at $440 million, oversubscribed and closed at the hard cap. Fund III will be invested in commercial-stage companies delivering innovation across all sectors of the healthcare industry to improve patient outcomes, enhance efficiency and reduce costs.

“We are grateful for the trust and support of our limited partners, many of whom were investors in our previous funds. It is their partnership that enables us to continue our strategy of investing in the healthcare industry as it undergoes a major transformation toward value-based care,” Garheng Kong, MD, PhD, MBA, HealthQuest’s founder and managing partner, said in a statement. “Technological innovations play a significant role in this transformative process — from improving patient care and safety, to driving down costs, reducing complexity and speeding delivery. We are investing in the companies that are enabling great change in the practice of modern healthcare.”

Since its founding in 2013, HealthQuest has raised more than $785 million in three funds, which already have resulted in four M&A transactions (Ajax, Avizia, Spirox and VirMedica) and one IPO (Avedro). Other investments include Castle Biosciences, CleanSlate, HealthChannels and Venus Concepts. Limited partners comprised of large financial institutions, pension plans, strategic healthcare organizations, foundations and family offices from across Europe, Asia and the U.S. invested in this most recent fund.

Target markets for Fund III include growth- and commercial-stage companies focusing on medical technologies, diagnostics, digital health and innovative services.

“HealthQuest sees great opportunity to support growth and expansion for a wide array of commercial companies that are developing new solutions to optimize value across all sectors of healthcare,” Kong added. “Our team, including the broader network we can access through our advisors, is designed to help companies achieve incalculable success.”