The Wall Street Journal is reporting that NovaQuest Capital Management has spun off its private equity unit into a new entity.

The entity, QHP Capital, is now pitching its second fund and targeting $425 million, according to the Wall Street Journal’s report that’s based on regulatory filings and discussions with people familiar with the fundraising. QHP is expected to continue operating as a healthcare investor in lower midmarket tech-enabled pharmaceutical services companies.

Based in Raleigh, N.C., and formed in 2000, NovaQuest Capital Management provides strategic capital to life science and healthcare companies.