Private equity firm Somerset Indus Capital Partners has announced the successful closure of its third fund, Fund III, at $288 million, surpassing its initial target of $250 million. The fund attracted strong interest from a wide mix of global investors, including development finance institutions (DFIs), global investment firms, domestic financial institutions, insurance companies, funds of funds, family offices, and impact investors across regions such as Europe, the United States, and Southeast Asia.
Focus on Healthcare Access
With Fund III, Somerset will continue its focus on improving healthcare access in India, especially for the “missing middle” in Tier II and Tier III cities. The firm plans to invest in scalable healthcare businesses that provide affordable and quality services.
Its investment areas will include:
- Healthcare delivery
- Pharmaceuticals
- Medical devices
- Diagnostics
- Other allied healthcare sectors
Investment Strategy
Somerset typically invests between $15 million and $40 million per company. However, with support from its investor network, the firm can participate in larger deals ranging from $60 million to $80 million through co-investments.
The new fund will also enable Somerset to explore emerging opportunities in areas such as:
- Preventive healthcare and OPD-linked insurance
- Healthcare financing and embedded insurance
- Affordable generic medicines
- India-focused MedTech innovation
- Diagnostics platforms improving access beyond metro cities
Early Investments and Track Record
So far, Fund III has already made three investments, including:
- Cyrix Healthcare
- Printmann Offset
- NU Hospitals
The firm has also reported strong performance from its earlier funds. Fund I delivered around 4.0x DPI, while Fund II is progressing toward exits, with its first realisation completed in September 2025 at nearly 4x MOIC.
With Fund III, Somerset aims to back high-impact healthcare businesses and contribute to building a more accessible and efficient healthcare ecosystem across India.
-By Shivani Solanki
