New Delhi, Sept. 9 -- Somerset Indus Capital Partners, a healthcare-focused private equity (PE) firm, is set to close its third fund around $275 million by October, with backing from existing and new limited partners (LPs), a top executive told Mint.

The firm has achieved its initial target, having already secured commitments of $250 million. The final close is expected next month, with Somerset exercising a green-shoe option of up to 10%, supported by some existing LPs of prior funds, said Mayur Sirdesai, partner at the firm.

"We've become more institutionalised. Fund 2 was about 65% institutional capital and now we're at nearly 95%, with a mix of DFIs (development finance institutions) from India and overseas," Sirdesai said on Tuesda...