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Somerset Indus Capital Partners has announced that Fund III is in the final stages of its close, nearing ~$250 million, with documentation completion underway.
The Fund has attracted strong participation from both existing and new Limited Partners, reflecting continued confidence in Somerset’s ‘Capital for Change’ investment philosophy.
With Fund III, Somerset remains firmly focused on addressing healthcare needs across India’s “missing middle” by backing innovative businesses that deliver affordable, accessible, and quality healthcare to Tier II and Tier III markets. This differentiated strategy has resonated strongly with global investors, and led to several impact-aligned LPs recognising the demographic transformation underway in India’s underserved regions.
The Fund has seen commitments from a diverse set of institutional investors including:
Development Finance Institutions (DFIs): several DFIs from Europe and the US
Global Institutions: A global investment company and marquee European institutions
Domestic Anchors: One of India’s largest financial banks
Other Investors: Insurance companies, funds of funds, family offices, and impact investors from Europe and Southeast Asia
Looking ahead, the Fund remains on track to achieve a potential final close by October 2025, potentially exceeding its target. A large existing investor is also expected to join at the final close, further strengthening the Fund’s base of Marquee Limited Partners.
Fund I and Fund II have demonstrated strong performance. Fund I has achieved a ~4.0x DPI, while Fund II is now approaching exits.
Notable investments include Ujala Cygnus Hospitals, which expanded affordable care across North India, and Krsnaa Diagnostics, a 12x investment that has grown into India’s largest provider of affordable diagnostic services. Fund III builds on this foundation, targeting India’s vast “missing middle.”
