HealthQuest Capital, a Belmont, CA-based sector specialist capital firm focused on companies optimizing value in health care, closed HealthQuest Partners IV, L.P., at $675m.
The fund will enable HealthQuest to continue to invest in growth-stage companies in the healthcare industry.
Led by Garheng Kong, MD, PhD, MBA, founder and managing partner, HealthQuest invests across healthcare subsectors, and believes healthcare innovation occurs at the convergent points between medical technologies, diagnostics/tools, digital health and innovative services. Target markets for fund IV include commercial-stage companies that improve patient outcomes, or reduce cost and inefficiency in the healthcare system. HealthQuest will also seek growth companies with an emphasis on current trends in the healthcare sector that are hitting an adoption inflection point with long-term impact. Fund IV will look for companies innovating on the clinical/technology side, such as AI-enabled diagnostics and precision oncology, as well as companies innovating on the care model side, including evolving primary care and mobile caregiver solutions.
Since the firm’s founding in 2013, HealthQuest has raised more than $1.6 billion across four funds and has made investments in a variety of healthcare startups including Everly Health, Lunit, Thirty Madison and TigerConnect. The team has also seen 18 exits across IPOs and M&A transactions, including the sale of BardyDx to Hillrom (now Baxter), BioIQ to LetsGetChecked, Biotheranostics to Hologic, and the IPO of Castle Biosciences.