PE firm Somerset Indus closes $288 million Fund III, above target

Healthcare-focused private equity firm Somerset Indus Capital Partners said on Monday it has closed on raising close to $288 million for its third fund, focused on healthcare in Tier I and Tier II cities, surpassing an initial target of $250 million.

The Mumbai-based fund will invest in businesses that deliver affordable and accessible care in healthcare delivery, pharmaceuticals, medical devices, diagnostics and allied segments, the company said in a release.

The latest round saw participation from development finance institutions, global investment firms, local financial institutions, insurance companies, funds of funds, family offices and impact investors from across Europe, the United States and Southeast Asia.

“The successful fundraising is a strong endorsement of our strategy and execution capabilities,” said Avinash Kankre, Partner, Somerset Indus Capital Partners.

The firm said that the strong participation of existing investors along with the commitments of the new marquee LP underlines the continued confidence.

“Fund III positions us to deepen our presence in underserved markets and partner with entrepreneurs to build scalable healthcare platforms. We are committed to delivering measurable impact with sustainable financial returns,” said Mayur Sirdesai, Partner, Somerset Indus Capital Partners.

Somerset typically invests between $15 million and $40 million per portfolio company and, through co-investment syndication with its limited partner (LP) network, can participate in larger transactions in the $60-80 million range.

The additional capital will support opportunities in preventive care and outpatient department (OPD)-linked insurance, healthcare financing, embedded insurance solutions, value-based generics, India-focused medical technology innovation and diagnostics platforms, aimed at improving reach beyond metro markets, the company said.

Through Fund III, Somerset has already made three investments, including Kerala-based medical equipment firm Sirix Healthcare, pharmaceutical packaging company Printman Offset and Bengaluru-based hospital chain NU Hospital.

The company said its previous funds have performed strongly, with Fund I returning four times the total capital contributed by investors, while Fund II is heading for an exit, with its first realization completed in September 2025 and nearly four times return on total investment, the company said.

Founded in 2011, Somerset Indus Capital Partners manages approximately $500 million in assets across three funds.