Investcorp sets up platform to invest in Chinese healthcare companies

Bahrain-listed alternative investment management firm Investcorp set up a new platform to invest in Chinese healthcare companies, that "have remained resilient" throughout the Covid-19 pandemic.

As part of the new platform, Investcorp acquired minority stakes in Lu Daopei Medical Group and WeDoctor for an undisclosed sum, the company said in a statement on Monday.

The platform will also help the Bahrain-based asset manager to curate a portfolio of primary and secondary stakes in Chinese healthcare companies that show potential for growth in the post pandemic world.

"We believe that there are many attractive opportunities in the Chinese healthcare sector as this is a pivotal time to meet increasing demand for quality medical services and treatments,” said Mohammed Alardhi, executive chairman of Investcorp.

Investcorp, which counts Abu Dhabi's Mubadala Investment Company as its biggest shareholder and has about $32.2 billion (Dh118.2bn) in assets under management, is expanding its footprint in Asia, with a number of acquisitions in China and India.

The company has invested close to $1bn in China and South East Asia through two major funds that focus on technology and food brands.

Investcorp has invested in a number of healthcare firms such as an eye hospital chain and a dialysis service provider in the neighbouring India.

But Investcorp's latest platform is its first dedicated arm to fund its healthcare interests in China.

Lu Daopei Medical Group was founded in 2001 by hematology expert Dr Lu Daopei and has grown to be "a pioneer of bone marrow transplantation", Investcorp said.

LDP operates four hospitals across Beijing and Shanghai and is now the largest bone marrow transplant group for leukemia treatment in the world.

WeDoctor is an online healthcare services company with more than 240 million registered users. Founded in 2010 by artificial intelligence expert Jerry Liao, the company builds, owns and operates a platform that links hospitals and doctors with patients, pharmacies, insurance programmes and financial services.

“Both companies are recognised leaders in their respective fields, delivering strong market share growth through world-leading medical and digital technologies amidst recent market volatilities," Hazem Ben-Gacem, co-chief executive of Investcorp, said.

"We look forward to leveraging our resources and expertise in partnership with our portfolio companies to deliver exceptional care to patients and enhanced value for all of our stakeholders.”

Updated: September 14, 2020 12:22 PM