HG Capital invests $23m in Chinese CRO firm
Chinese private equity firm HG Capital has led a RMB160 million ($23 million) round of funding for Beijing Nuokangda Pharmaceutical Technology, a contract research organization (CRO).
Beijing-based K2 Venture Capital, the investment unit of financial advisor China Renaissance Partners, also participated in the round. HG Capital invested in the company through its sector-focused fund – Huagai Healthcare Industry Fund II – which closed at RMB2 billion in November 2016, the GP confirmed to local media.
Established in 2013, Beijing Nuokangda offers outsourced research and development services to companies in the pharmaceutical, biotech and medical equipment industries. It currently has more than 20 clients, including large publicly-traded Chinese firms.
Beijing Nuokangda will use the new capital and leverage HG Capital’s network to accelerate growth. The company plans for an domestic IPO in the near future.
HG Capital was co-founded by Xiaolin Xu, formerly an investment director at CCB International Asset Management, and Binghui Lu, previously an investment director at KKR, in 2012. The GP raises separate industry-focused vehicles to invest in healthcare, telecom, media and technology (TMT), and the media and entertainment sectors. It manages assets worth tens of billions in renminbi.
Huagai Healthcare Industry Fund II has received LP support from more than 20 China-listed companies. Shortly after closing, it committed RMB150 million to Beijing Bao Dao Healthcare, a maternity hospital formed as a mainland China-Taiwan joint venture.
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