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HealthQuest Capital closes second fund at $225 mln hard cap

HealthQuest Capital closed its second fund at its $225 million hard cap, exceeding an initial target of $175 million in commitments.

Menlo Park, California-based HealthQuest provides growth capital to commercial-stage healthcare innovation companies. The firm raised $110 million for its debut fund in 2014.

HealthQuest seeks to invest in products or services that optimize value or improve efficiency in the healthcare system, except for pharmaceutical or biotechnology companies. It typically commits $3 million to $10 million per deal, with the ability to invest up to $20 million over time.

Garheng Kong, a former general partner at Sofinnova Ventures, founded HealthQuest in 2013. Until last year, Sofinnova supported the firm by helping with back-office responsibilities, as well as fundraising and investor relations.

“HealthQuest is a separate fund; the concept, strategy and focus were generated and thought of while I was a GP at Sofinnova,” Kong told peHUB in 2014.

HealthQuest said Tuesday it participated in a KKR-led $45 million Series C funding round for Spirox Inc, a medical device company.

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