QuadriaCapital

A leading healthcare-focused growth equity fund manager in South Asia and Southeast Asia which seeks to increase the supply of high-quality, affordable healthcare in the region.

A leading healthcare-focused growth equity fund manager in South Asia and Southeast Asia which seeks to increase the supply of high-quality, affordable healthcare in the region.

Key details

Sector
Social: Healthcare
Strategy
Private equity - Primary investment
Geography
Asia

Key metrics

Investment date
March 2019
Target SDGs
Healthcare and well-being (SDG 3)
Impact KPIs
Patients served, Healthcare jobs provided
General partner
Quadria Capital

Access to healthcare is a major global issue, with the World Health Organization (WHO) estimating that over half of the world’s population lacks access to essential health services. Even for those who have access to healthcare, the WHO reports that over 100 million people are pushed into extreme poverty every year due to high medical costs. Early access to healthcare, including diagnostics and prevention, can save lives. The private sector can help improve healthcare access by developing infrastructure, implementing innovative technologies, and expanding coverage to underserved populations through financial resources.

South and Southeast Asia are characterized by a clear healthcare demand supply gap, resulting in several challenges: (1) Access. The number of hospital beds per 1,000 people in South Asia is more than 5x lower than in the United States8; (2) Affordability. More than 55 million people in India are pushed into poverty each year because of healthcare expenditures9; (3) Quality. The likelihood of contracting an infection from a medical procedure is on average 3x higher in Southeast Asia than in the Americas10; and (4) Awareness. An estimated 51% of all diabetes cases in Southeast Asia go undiagnosed11.

Quadria Capital Fund II (“Quadria II”) is a private equity fund managed by Quadria Capital (“Quadria”) providing growth equity capital to healthcare companies in South and Southeast Asia across a range of subsectors, including healthcare delivery, life sciences, healthcare services and medical devices. BlueEarth’s impact thesis for the investment focuses on the significant healthcare demand-supply imbalance in the region and the need for private capital to help address this.

Blue Earth Capital believes that Quadria is uniquely positioned to tackle these challenges by providing growth capital to portfolio companies to help increase healthcare provisioning and by offering strategic and operational support to its portfolio companies, via its experienced, sector specialist investment team and significant, dedicated value creation resourcing.

Quadria is particularly focused on helping its investees with less developed impact measurement practices to improve their impact data collection and reporting. Quadria takes time to explain the rationale for impact monitoring and ESG due diligence where its investees are less familiar with such topics, and the firm uses what it has learnt from BlueEarth to demonstrate the importance of a robust approach to impact measurement.

Quadria’s Fund II portfolio companies served over 7.2 million patients in 2022. The pharmaceutical investees have manufactured over 19,000 different types of generic drugs, which are considerably cheaper than their branded counterparts, thus democratizing access to critical drug treatment. Investee companies provided over 36,000 direct jobs during 2022.

Quadria partnered with BlueEarth because both companies have similar philosophies regarding social impact. As the fund has evolved, BlueEarth has supported Quadria with its impact management, by both demonstrating the importance of impact measurement and sharing industry best practices such as standardized data collection templates. As Quadria continues to grow, it will continue to look to BlueEarth for guidance on its impact approach.

BlueEarth continues to work with Quadria to further strengthen its robust governance and operational processes and align on a clear set of impact priorities related to the number of healthcare beneficiaries resulting from Quadria investments.