Questa Capital Closes $397M Fund III to Invest in Expansion Stage Healthcare Companies
Press release issued by Questa Capital Management in respect of Questa Capital Partners III, L.P.
WASHINGTON and SAN FRANCISCO, Aug. 24, 2023 /PRNewswire
Venture Growth Equity Firm Raises New Fund to Continue Focus on Modernizing Healthcare
Questa Capital Management, a venture growth equity firm exclusively dedicated to the healthcare industry, today announced the final close of Questa Capital Partners III, LP (the “Fund”) with $397 million of capital commitments, bringing the firm’s aggregate committed capital to more than $1 billion. The Fund will invest selectively in a portfolio of growth companies in three healthcare sectors of focus: services, technology, and medical devices. The firm has an investment team of ten led by Founder Ryan Drant and Managing Partners Brad Sloan and Shawn Conway, and currently manages eighteen portfolio companies across its three healthcare sectors.
The Fund secured commitments from a diversified blue-chip investor base comprised of leading endowments, family offices, foundations, consultants, pension plans and fund-of-funds.
Questa Capital III will invest in growth companies in 3 healthcare sectors: services, technology and medical devices.
Questa Founder and Managing Partner Ryan Drant noted, “We are extremely pleased to close on Fund III despite a challenging fundraising environment. We are both grateful for the strong interest and ongoing support from our existing investors, and pleased to be starting long-term relationships with a small group of exceptional new limited partners. We are honored to work closely with our portfolio companies, including marquee companies like Dispatch Health, Cortica, Medrio, and Calyxo. We are also energized by the opportunity set we see in the market, and look forward to continuing to build differentiated and high-growth healthcare companies in close collaboration with strong management teams. Questa will continue to partner with companies that share our vision and passion to improve clinical outcomes, efficiency, safety, and the patient experience to help address critical challenges in our healthcare system.”
Questa Capital’s record of being an active and collaborative partner for the companies in which it invests is a hallmark of the firm’s approach. The Questa team brings deep sector expertise in healthcare services, technology, and medical devices, and a deep network and industry experience to help guide portfolio companies toward leading market positions and accelerated growth.
Value-based care is an important investment theme at Questa, and Fund I portfolio company Cortica is an excellent example of Questa’s activity in the sector. “As Cortica continues to grow rapidly, Questa Capital has been an exceptional partner for our company as we build our team, broaden our relationships, and execute on our geographic expansion,” said Neil Hattangadi MD, CEO and Co-Founder of Cortica. “Ryan and Brad are both extremely valued leaders on the Cortica board of directors. We congratulate them on their success in raising Fund III and look forward to our continued close collaboration.”
Gunderson Dettmer served as legal counsel and Acalyx Advisors served as advisors to Questa Capital.
About Questa Capital Management
Questa Capital is a venture growth equity firm focusing on investments in expansion-stage healthcare companies. Questa seeks out disruptive, technology-enabled business models that help improve patient lives, streamline market inefficiencies, and provide better quality care. The firm partners with superior management teams to help build innovative market leaders in the healthcare services, technology, and medical devices sectors. Questa is led by industry veterans Ryan Drant, Brad Sloan and Shawn Conway, leaders in healthcare investment and operations who have invested in and advised more than 60 growth-stage companies. More information is available at questacapital.com.
