Warburg Pincus backs Chinese private hospital chain UIB
Warburg Pincus has invested an undisclosed sum in UIB, a Shanghai-based hospital chain that focuses on obstetrics, gynecology and pediatrics.
This is one of the first investments the GP has made in China from its latest global fund - Warburg Pincus Private Equity XII - which closed last year at $13.4 billion.
UIB was founded by Zixuan Geng, who has over 21 years of experience in the private hospitals space. Geng launched the UIB International Postpartum Care Center nine years ago, the first of this kind in China. The group also operates Ruizhitang Women's Healthcare Center, and it plans to open two more hospitals - Shanghai Everbetter Maternity Hospital and Shanghai Everbetter Pubin Children's Hospital - this year.
The new investment will be used to accelerate UIB's development and expand its business offerings in the maternity and childcare services value chain.
"China's healthcare services sector is undergoing a profound transformation as more privately-own hospital brands emerge to cater to the growing need for premium healthcare services and treatment," Min Fang, managing director of Warburg Pincus, said in a statement.
Warburg Pincus has invested more than $9 billion in healthcare companies globally to date. In China, it previously backed Beijing-based Amcare Women's & Children's Hospital, which also operates in the gynecology, obstetrics and pediatrics segment.
China's hospital space has become a popular destination for PE investors. While much private equity attention has focused on retail-oriented services such as health check-up centers and general treatment fields including maternity care, some GPs are targeting specialist hospitals.
Most recently, Bain Capital bought a majority stake in Asia Pacific Medical Group (APMG), which specializes in neurosurgery and oncology, for $150 million. CITIC Private Equity (CITIC PE) also invested an undisclosed sum in New Journey Hospital Group, a cancer hospital operator.
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