HealthQuest Capital Closes on $440 Million Fund to Invest in Growth-Stage Companies Optimizing Value in Healthcare

Team of Experienced Healthcare Investors and Operators Focus on Innovation that Drives Better Patient Outcomes and More Affordable, Effective Healthcare

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HealthQuest Capital

Apr 03, 2019, 09:00 ET

SILICON VALLEY, Calif., April 3, 2019 /PRNewswire/ -- HealthQuest Capital, a growth capital firm investing in companies that optimize value in healthcare, today 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," said Garheng Kong, MD, PhD, MBA, HealthQuest's founder and managing partner. "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 the firm's 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.

The HealthQuest team features individuals with extensive experience in both healthcare investing and operations. Throughout their careers, team members have held leadership roles across the entire healthcare and investment spectrum – from providers and healthcare plans to biopharma, medical devices, diagnostics and consumer products – at companies such as GlaxoSmithKline, IQVIA, LabCorp, LensCrafters, Proctor & Gamble and Roche. As a team, collectively they have achieved more than 35 successful IPOs and M&As.

HealthQuest's entire team works together to support each company at every step of their growth journey. To that end, HealthQuest has assembled an impressive advisory board that includes current and former CEOs and presidents from Bon Secours Mercy Health, Humana, Johnson & Johnson, LabCorp, Mayo Clinic, Medtronic and P&G. As a team, HealthQuest leverages the deep, complementary experience of its advisors along with that of its partners to provide portfolio companies with the highest level of sophisticated guidance, expertise and an expansive network of contacts across the industry in every aspect of growth, from new market creation to partnerships to financial modeling.

"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 said. "Our team, including the broader network we can access through our advisors, is designed to help companies achieve incalculable success."

About HealthQuest Capital
Based in the San Francisco Bay Area, HealthQuest Capital is a growth capital firm investing in commercial-stage companies that are optimizing value in healthcare by improving outcomes and reducing costs. With more than $785 million in capital under management, the firm focuses on fostering innovation across the healthcare spectrum, including medical technologies, diagnostics, digital health and innovative services. The HealthQuest team combines decades of successful investing experience with deep domain expertise in all aspects of the healthcare industry. For more information, visit www.healthquestcapital.com.

SOURCE HealthQuest Capital