Capital Group, GL buy stake in Chinese hospital operator

CGPM and GL have acquired a 29% stake in the business, according to a release. Financial details have not been disclosed. Jinxin Healthcare will use the new capital primarily to support its expansion plans, while also partnering with the GPs to improve its internal governance standards and access global capital markets.

Jinxin Group was founded in 1951 and operates in Sichuan province. The group provides maternity services through Jinxin Healthcare, with additional business lines comprising psychiatry services, fertility treatment, and elderly care. Jinxin Healthcare is one of Sichuan’s busiest obstetrics and gynecological hospital chains, having completed about 20,000 births in 2017.

“Jinxin Healthcare has become a rare privately-owned healthcare company in China that is able to compete with the best local public hospitals and even take a leading position in the medical specialties it operates in,” said Nick Chen, a partner at CGPM. “The country's ongoing healthcare reform and urban consumption upgrade trend will drive more market demand growth.”

CGPM has about $1.7 trillion in assets under management worldwide and claims to have made PE investments amounting to more than $2 billion in Asia’s emerging markets over the past 20 years. Recent activity includes a $150 million Series E round for biopharmaceutical developer Innovent Biologics earlier this year.

GL is a healthcare-focused PE firm founded in 2010 by Jeffrey Li, former China head of Novartis and son of Li Ruihan, formerly head of the Chinese People’s Political Consultative Conference (CPPCC). Last year, the firm headed a consortium that acquired US-listed Chinese drug developer SciClone Pharmaceuticals for $605 million.

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• Topics
• Greater China
• Healthcare
• Expansion
• China
• GL Capital
• Growth capital
• Capital Group Private Markets