New Delhi, Sep 14 (IANS): HCL founder and noted philanthropist Shiv Nadar and former Tech Mahindra chief executive Sanjay Kalra on Monday announced a fund that will invest up to $500 million in buying and mentoring healthcare-related companies in the US.

Set up as the Shiv Nadar & Sanjay Kalra Associates, a limited liability company, the fund will focus on players in IT products, services, payers, pharma firms and life Sciences, that can face the challenges of new regulations, consumer attitudes, demographics and technologies.

"The firm will also invest in select early-stage US and Indian firms, where product, platform or talent will accelerate portfolio objectives," a statement said, adding focus areas include hospitals, long-term acute care, physician practice, information Exchanges and insurers.

“The US healthcare industry is undergoing radical transformation with the Affordable Care Act. Evolving thought and business models have little semblance to present mechanisms," Nadar, who has taken on the role of mentor in the new arm, said in a statement.

"Over the next five years, SNSK aspires to be an engine of accelerating digital solutions that would make patient care more accountable, efficient, predictable and effective. I am delighted to join hands with Sanjay and Mahesh in this exciting journey,” he said.

Mahesh Nagaraj has been named managing director of the venture.

Kalra said SNSK will function as an operating team with capital.

"Our relationship capital, trust and Shiv as a mentor are the most valuable elements we bring to our portfolio companies. We will support management teams to unlock value in their companies through our entrepreneurial passion, engineering heritage and global operating experience.”

Nagaraj said the stated intention was to realise synergies across its portfolio and rigorously explore growth in new markets, besides helping the businesses in cost discipline, research and development and cutting-edge technology adoption.