HealthQuest Capital
Private asset firm
Redwood City, CA

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Review

Overall Rank: 42
Category: Emerging Growth
Category Rank: 12

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Profile

HealthQuest Capital is a private asset firm that provides capital to transformative healthcare companies. HealthQuest focuses on commercial prospects that drive enhanced patient outcomes and elevate the efficiency of healthcare delivery. With approximately $2 billion in capital under management, the firm focuses on fostering innovation across the healthcare spectrum, including medical technologies, diagnostics and tools, digital health, and innovative services. The HealthQuest team combines decades of investing experience with domain expertise in the various aspects of the healthcare industry.


Awards

2023 Top Growth Equity Firms

2022 Top 25 Healthcare Investors, Garheng Kong

Key People

Garheng Kong

Garheng founded HealthQuest Capital in 2012 with a vision to improve people’s lives by transforming healthcare through high-growth companies. He has a unique background as a physician, scientist, and engineer and over 2 decades of experience in healthcare investing, including 33 exits (IPO / M&A). 

Randy Scott

Randy is a founding partner at HealthQuest Capital. After a successful career as a MedTech entrepreneur, Randy switched careers to investing because he also saw the opportunities overlooked by investors and felt he could help innovative young businesses by applying the lessons he learned by leading similar companies.

Anthony Williams

Anthony Williams has been a partner at HealthQuest since 2019. Prior to joining HealthQuest, Anthony was President of medical device company, Globus Medical (NYSE: GMED). 

Sam Brasch

Sam Brasch joined HealthQuest in 2023 as a Partner, bringing over 25 years of experience in leveraging technology innovations to drive value in the healthcare and life sciences industries.

Conrad Wang

Conrad Wang, a physician, scientist, and engineer as well, joined HealthQuest in 2023 as a Partner. He has nearly two decades of healthcare investing experience, ranging from seed investing and company formation to structured growth capital for commercial stage companies.

Sharath Reddy

Sharath Reddy, with over fifteen years of investing experience, joined HealthQuest in 2022. His investing and operating experience spans private, public and credit markets.

Funds Raised

HealthQuest was founded in 2012 by a team of seasoned healthcare investors and operators with a vision to create a leading healthcare-focused growth equity firm. The firm launched its first fund, HealthQuest Fund I, in 2013 with $111 million of committed capital and began investing in commercial stage healthcare companies across modalities and sectors. In 2016, HealthQuest closed its second fund, HealthQuest Fund II, with $228 million of committed capital, followed by HealthQuest Fund III in 2019 with $447 million of committed capital.

The firm continued to execute on its strategy of backing innovative and high-growth healthcare companies that address significant unmet needs and have clear competitive advantages. In 2022, HealthQuest closed its fourth and largest fund, HealthQuest Fund IV, with $685 million of committed capital and started deploying capital in 2023.

In addition to its flagship funds, HealthQuest also launched and closed a Tactical Opportunities Fund in 2023 with $300 million of committed capital. This fund aims to expand the firm’s reach and vision to be a healthcare capital provider of choice to a broader array of healthcare companies, including those that may not fit the traditional growth equity profile or require more flexible capital solutions. Today, HealthQuest manages approximately $2.0 billion of assets and a diverse portfolio of healthcare companies across the globe.

Include a listing of the firm’s funds raised over the past 10 years with the information below:

Fund Name Size Date
HealthQuest Tactical Opportunities Fund, L.P. $300M 2023
HEALTHQUEST PARTNERS IV, L.P. $685M 2023
HEALTHQUEST PARTNERS III, L.P. $447M 2019
HEALTHQUEST PARTNERS II, L.P. $228M 2016
SOFINNOVA HEALTHQUEST PARTNERS, L.P. $111M 2013

Key Investments

Avedro Invested: Invested April 17, 2017, exited
Category: Medical devices

Leader in corneal remodeling, acquired by Glaukos (NYSE: GKOS)

Bardy Diagnostics: April 11,2019, exit
Category: Medical devices

Remote cardiac monitoring, acquired by Hill-Rom

BioIQ: Invested March 8, 2018, exited
Category: Diagnostics

Diagnostic solutions for health testing programs, acquired by LetsGetChecked

Biotheranostics: Invested January 20, 2016, exited

Molecular diagnostic tests for oncology, acquired by Hologic (HOLX)

Castle Biosciences: Invested August 11, 2014, exited
Category: Diagnostics

Molecular diagnostic tests for rare cancers, IPO (CSTL)

Lunit: Invested November 23, 2021, exited
Category: Diagnostics

AI-enabled precision diagnostics, IPO (KOSDAQ: 328130)

Pulmonx: Invested April 17,2020, exited
Category: Medical devices

Minimally invasive treatment for emphysema, IPO (NASDAQ:LUNG)

Everly Health: Invested December 28,2020, active
Category: Diagnostics / HCIT

Patient-centric at-home diagnostic testing platform

Somatus: Invested February 9,2023, active
Category: Healthcare services

Value-based care for kidney disease patients

Thirty Madison: Invested May 18, 2021, active
Category: Healthcare services

Virtual specialist care for chronic conditions

TigerConnect: Invested September 21, 2020, active
Category: HCIT

Care communication and collaboration platform

Capital Responsibility

Our mission at HealthQuest is to broadly improve people’s lives by investing in healthcare innovation. We are focused on identifying and accelerating transformative companies that are improving patient outcomes, or reducing cost/inefficiency in the healthcare system. We believe implementing ESG conscious practices into our investment process, and operating responsibly as a firm, are important to maximizing long-term relationships and outcomes: with our investment companies (and their users/stakeholders/patients), our employees and our capital partners.

Through involvement on our investments’ Board of Directors, we aim to proactively identify risks and opportunities related to ESG issues, and contribute positively to the responsible practices of our portfolio companies. We approach ESG issues with humility (one of our core values), and believe there is always room to continually improve our investment and operational practices. We commit to identifying and monitoring ESG risks and opportunities both pre- and post- investment, as appropriate.

CEO Reviews

Everly Health CEO, Julia Cheek

“They’ve helped in everything from recruiting leadership roles to providing key perspectives on the landscape of testing innovation and introducing us to various leaders within the HealthQuest network.”

Lunit CEO, Brandon Suh

“HealthQuest has been very supportive in our efforts to grow as a company… HealthQuest was very understanding and helped us navigate through the difficult times of going public in a very unfavorable market.”