China: CITIC PE invests in Beijing New Journey Cancer Hospital

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CITIC Private Equity Funds Management has made a strategic investment in Beijing New Journey Cancer Hospital.

Details of the transaction were not disclosed.

China’s government has pushed for more private investment in its public hospitals to reduce the burden on creaking public hospitals and trim a healthcare bill set to hit $1.3 trillion by 2020. Beijing New Journey Cancer Hospital is one of such hospitals.

Peking University Cancer Hospital, one of the top such facilities in China, had played a major role in establishment of the hospital in 2011, said a company statement.

The number of cancer cases in China has risen at a fast rate over the last two decades. Private players have entered the sector, expecting further opening up of the healthcare sector.

In January, China’s Wanda Group announced a 15 billion yuan ($2.3 billion) investment in hospital developments around the country, to tap into a reform drive to give private firms a larger role in healthcare.

CITIC PE, which has $12.3 billion under management across six funds, said that it will add to the existing resources and leadership of Beijing New Journey Cancer Hospital.

In China, state-run hospitals dominate the market, but private facilities have mushroomed in the last few years after the government relaxed rules for private investment.

Firms like U.S.-based Chinaco Healthcare, Germany’s Artemed Group, China’s Shanghai Fosun Pharmaceutical Group Co, investment firm TPG Capital Management LP and property developers China Vanke Co and Evergrande Real Estate Group have all entered the sector.

However, many doctors still prefer to serve in the public sector, and there has been a push-back from state-owned hospitals to slow down healthcare reforms.

This is CITIC PE’s fourth investment this year. It earlier invested in Taoshihui’s $46 million Series A round, FXiaoKe‘s Series E round, and $46 million in Baofeng Mojing‘s Series B round.

Also read:

FXiaoKe raises funding from CITIC PE, Hillhouse Capital

China Overseas Land to buy CITIC property in $4.8b deal

Myanmar gives go-ahead to Kyaukphyu SEZ, China’s CITIC to hold 85% stake

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.