HealthQuest Capital, a San Francisco Bay Area-based growth capital firm investing in companies that optimize value in healthcare, closed HealthQuest Partners III, L.P. at $440m.
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 the fund.
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.
Target markets for the fund include growth- and commercial-stage companies focusing on medical technologies, diagnostics, digital health and innovative services.
Founded in 2013 by Garheng Kong, MD, PhD, MBA, managing partner, 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.