Chinese asset manager Cedarlake Huarong Group has made its first healthcare investment in Singapore injecting an undisclosed amount in local-headquartered healthcare and medical aesthetics company Novena Global Lifecare Group.
The financial terms of the strategic investment were not disclosed.
The investment by Cedarlake Huarong Capital is expected to help Novena Global to expand through organic growth and acquisitions in China’s fragmented healthcare and aesthetics sector, an announcement said on Tuesday. Also, the investment is an initial commitment that is expected to increase as the expansion plan gains momentum in China.
Founded by former investment bankers and cousins Terence and Nelson Loh, Novena Global is a Singapore-based Asian integrated healthcare and medical aesthetic group with more than 100 points of sales in the region, including Singapore, Hong Kong, Taiwan, Korea, Indonesia, India, Malaysia, China, and also Spain.
Its business targets three key areas, namely preventive care through health screenings, nutrition and supplements; predictive care through DNA testing to identify potential susceptibilities to illness; and rejuvenate care through providing aesthetic medical services.
In November, the company acquired four eye-care clinics in Singapore and a majority stake in Taiwan’s Hexin Group which is the third largest healthcare screening provider in Taipei. It is also looking at a listing on the Taiwan Stock Exchange to raise $150 million and use the funds to grow organically and through acquisitions.
The company plans to further expand its chain of clinics in gateway cities in China offering medical aesthetics, stem cell treatments, skin and body care products, health screenings, DNA testing and post-natal care. The brands in its portfolio include NOVU GENESIS, NOVU, EQUAL BEAUTY, Health First (Taiwan) and About Face.
“China is a huge market and we believe we are well positioned to seize opportunities especially in its highly fragmented aesthetic healthcare market. There’s definitely room for a well-run, well-funded integrated practice that provides affordable and accessible healthcare and medical aesthetics services to a large number of people,” said co-founder Nelson Loh who is also the Executive Chairman of Novena Global.
According to projections, China will become one of the world’s largest cosmetic surgery market by 2019 valued at 800 billion yuan.
Besides China, Novena Global plans to continue expansion in countries it already has a presence, focusing on North Asia and Southeast Asia.