Sanbo Brain Hospital, a Chinese privately-owned neurology specialist, has raised over 800 million yuan ($113 million) in a Series B round of equity financing led by China’s Taikang Asset Management.
A unit of Chinese investment bank CEC Capital, healthcare fund Park Road Medical Investment, Beijing-based equity investment firm Broadhi Capital, and Beijing Puhong Investment Fund Management participated in the financing.
GF Investment, a private equity unit of Hong Kong-listed GF Securities, and China’s Hong Ding Capital also poured money into the Series B round, said CEC Capital, which was the exclusive financial adviser for the deal, in a WeChat post on Friday.
The investment will “effectively advance the sustainable development” of Sanbo, said company chairman Zhang Yang in the WeChat post. Sanbo will increase investments in the commercialization of scientific research, talent recruitment, and medical equipment, in an attempt to further promote the brand and expand service offerings across different regions.
Founded in 2004, Beijing-based Sanbo operates as a neurology hospital chain that currently runs six large-scale hospitals in Chinese cities and provinces, including Beijing, Chongqing, Kunming, Fujian, Henan and Yunan. The company is currently building a new hospital in the country.
The company’s Beijing flagship hospital specialises in the treatment of intracranial tumours, cerebrovascular diseases, functional neurological diseases, epilepsy, and spinal cord diseases, among others.
Sanbo raised hundreds of millions of yuan from Chinese investment firm Delian Capital and venture capital firm Kaitai Capital in November 2017.
“The neurology field has a market of massive demand as well as a high technical barrier,” said Xu Jun, head of Taikang’s strategic equity investment team. “Taikang will actively explore cooperation opportunities with Sanbo in the fields of health insurance and healthcare management to bring better service experience to insurance customers.”
Established in 2006, the lead investor is an asset management platform of Beijing-based Taikang Life Insurance, which is China’s fourth-largest life insurer. The company had over 1.4 trillion yuan ($197.89 billion) in total assets under management (AUM) as of December 31, 2018, shows its website.