Quadria Capital to complete returning Fund 1 by year end
Quadria Capital, a healthcare-focused investor, has started distributing the gains from its 10-year-old first fund, along with the principal, to its limited partners or investors. The process is anticipated to conclude by 2023-end. “We are in the process of returning the fund completely.
There are two assets that are left... We intend to have completed the exit of the fund by the end of this calendar year. And currently, the fund is tracking in NAV closer to 2.9x cash-on-cash (in US dollars)," Amit Varma, managing partner, Quadria Capital, said in an interview.
NAV stands for net asset value. Quadria Capital’s inaugural fund’s target corpus was $300 million, although it eventually invested $450 million, including co-investments. Varma, however, did not name the assets that Fund 1 is yet to exit from.
The portfolio included Concord Biotech, which went public in August, with Quadria selling its 20% stake. Similarly, it exited 30% in AIG Hospitals last year, an investment made from both Fund 1 and Fund 2. Quadria Capital raised $600 million in 2016 for its second fund, and eventually deployed $750 million including limited partner co-investments.
“We just completed deployment (of Fund 2) in 2022; so, it’s a very early fund. But we’ve already delivered some DPI when we exited AIG, which we were invested in from Fund 1 and Fund 2. Our NAV for Fund 2 is sitting on 1.8x cash on cash (in US dollars)," he added.
DPI, which stands for distribution to paid-in capital, is the measure of capital returned to investors from a fund against the amount invested. Currently, Quadria Capital is in the process of raising its third fund for which it expects to raise $800 million to $1 billion. “Our cover is $800 million.
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