Centurium buys Beijing children's hospital

The size of the investment was disclosed by a source familiar with the situation. Centurium declined to comment on the matter. Jingdu has previously received funding from the likes of Sequoia Capital China and China Everbright.

The hospital was established in 2015 and occupies a 40,000-square-meter facility with around 500 beds. It has 36 departments covering different elements of tertiary care and is known for its expertise in children’s blood disease, cardiology, dermatology, and oral medicine. The hospital treats nearly 300,000 outpatients and 8,000 inpatients each year. Jingdu became a designated medical institution under the Beijing government’s urban basic medical insurance plan in 2017.

“As the largest private tertiary children’s hospital in China, Jingdu has become a leading children’s specialty health services platform, and it has accumulated extensive medical resources and service capabilities. We highly value Jingdu’s brand and professionalism, and firmly believe Jingdu will further solidify its leadership in the industry through continued investment in its medical team and service quality,” said Zhixing Chen, an executive director at Centurium, in a statement.

The private equity firm pursues control and significant minority deals in China’s consumer, services, and healthcare sectors. The Fund I portfolio includes China Biologic Products – currently subject to a $4.6 billion take-private bid involving Centurium and other investors – and UIB Group, a children and women’s medical services group with a children’s hospital, an obstetrics and gynecology hospital, and a postpartum center.

Prior to closing Fund I at just over $2 billion last year, Centurium raised two renminbi-denominated pools of capital, one of which targeted healthcare. The two pools were subsequently merged. This vehicle made the initial investment in UIB and the US dollar fund then took out the position while putting in more capital. Centurium has a controlling stake in UIB.

The firm is also an investor – through the renminbi fund – in Beijing Arion Cancer Hospital. This is a greenfield development that is expected to open by the end of 2020.

Centurium launched its second US dollar fund earlier this year with a target of $2.5 billion. A first close of around $2 billion was scheduled for the end of the first quarter, but the process has been put on hold following the emergence of fraud at another portfolio company, coffee shop chain Luckin Coffee.

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• Topics
• Greater China
• Healthcare
• Buyouts
• China
• Centurium Capital
• Sequoia Capital
• China Everbright