HealthQuest Capital has closed its fourth fund at a hard cap of $675 million. The fund will back growth-stage companies in the healthcare sector.
SILICON VALLEY, Calif., May 17, 2022 /PRNewswire/ — HealthQuest Capital, a sector specialist capital firm focused on companies optimizing value in health care, today announced the close of HealthQuest Partners IV, L.P., at its hard cap of $675 million.The oversubscribed fund will enable HealthQuest to continue to invest in growth-stage companies that are revolutionizing the healthcare industry.
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.
“The pandemic, the evolution of value-based care and increasingly informed patients have produced an environment that has created an unprecedented openness towards the adoption of new technologies,” said Garheng Kong, MD, PhD, MBA, HealthQuest’s founder and managing partner. “With our investment partners and ecosystem of advisors, we are uniquely positioned to ensure these innovations are adopted at scale and at price points that will meaningfully improve patients’ lives.”
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.
The HealthQuest team is led by founder Garheng Kong, a physician, scientist, and engineer by training. With over two decades of experience investing, Garheng has led nearly 30 companies to successful exits. The HealthQuest team is strengthened by a board of advisors comprised of current or former CEOs in the most influential healthcare companies in the country, including Aon Hewitt, Becton Dickinson, Bon Secours Mercy Health, Cardinal Health, Humana, LabCorp, Medtronic, OptumHealth and a former U.S. Surgeon General. Together, the HealthQuest ecosystem provides portfolio companies unique strategic insights, access, and opportunities.
“When it comes to the adoption of new healthcare innovations, there is a natural tension between patients, providers and payers. Our team helps our portfolio companies understand how each player sees the problem in order to increase the likelihood of commercial success,” Kong said. “With the new fund, HealthQuest Capital is able to work alongside these companies to give them the support they need to make a widespread impact in the healthcare sector.”
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 $1.6 billion in capital under management, the firm focuses on fostering innovation across the health care 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.