China Everbright's mezzanine fund backs Neusoft Medical
China Everbright has invested an undisclosed amount in Chinese healthcare conglomerate Neusoft Holdings through its renminbi-denominated mezzanine fund.
Neusoft will use the capital for strategic maneuvers in the healthcare space; the company has been seeking to scale up its investments in elderly care, education and other sectors. China Everbright will have the right to convert part of its investment into equity in Neusoft Medical Systems under certain conditions, according to a statement.
Neusoft Medical develops CT, MRI, X-Ray and ultrasound medical imaging systems. Its products are exported to over 100 countries and territories worldwide, and used by more than 9,000 healthcare providers.
The company received support from PE backers in 2014, when a consortium including Hony Capital, Goldman Sachs and Canada Pension Plan Investment Board (CPPIB) invested a combined $610 million in Neusoft Corporation, the publicly listed IT services division of Neusoft Holdings. That capital was used to support both Neusoft Medical and Neusoft Xikang, which develops a mobile app to connect users with medical institutions and doctors.
China Everbright's mezzanine fund provides structured solutions in the form of hybrid debt-plus-equity instruments. It seeks to partner with industry leaders and create investment platforms that identify acquisition targets and take the lead on deal structuring and negotiation, particularly as China's slowing economy creates greater demand for mezzanine investments.
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