CITIC Capital rebrands as Trustar, backs Swiss medtech business

The name change was announced alongside an investment of $50 million in MedAlliance, a Switzerland-headquartered medical technology company that produces drug-eluting balloons used to treat patients suffering from coronary and peripheral arterial disease. Part of Trustar’s strategy is to back international businesses with a view to rolling out their brands and technologies in China. It is the largest shareholder in MedAlliance.

The firm said the rebranding would “contribute to efficient decision-making, firm innovation, improved team morale and effective talent retention, with which the PE business will be better positioned to adapt to the ever-changing market environment.” The repositioning is largely cosmetic, accompanied by no parallel modifications in ownership or management.

Ownership of Trustar is split 51-49 between CITIC Capital Holdings and the management team. CITIC Capital Holdings is 20.75%-owned by its own separate management team. CITIC Group’s Hong Kong-listed subsidiary owns 19.9%, while Tencent Holdings, Fubon Financial Holding, and Qatar Investment Authority (QIA) have 20.7%, 19.92%, and 18.73%, respectively.

Another driving factor is a brand reorganization taking place within CITIC Group, which will see all but the largest subsidiaries change their names, according to a source close to the situation. 

The new name is a compound of “trust” and “star,” and it is closely aligned with the firm’s Chinese names, both old (Zhongxin Ziben) and new (Xinchen Ziben).

CITIC Group was originally known as China International Trust Investment Corporation, and the Chinese word “xin” translates into English as “trust.” It is seen as representing the firm’s deep-rooted CITIC lineage as well as a desire to serve as a trusted partner to investee companies and investors. Meanwhile, “chen” is an allusion to Yichen Zhang, the firm’s CEO, whose given name can be interpreted as “north star” or “polestar.” The polestar is regarded as a symbol of passion and commitment.

CITIC Capital Holdings has more than $35 billion across private equity, real estate, structured investment and finance, special situations, and asset management strategies. Trustar, the private equity division, has $7.6 billion in committed capital and operates in China, Japan, and the US. It is currently deploying its fourth China buyout fund, which closed at the hard cap of $2.8 billion in 2019.

MedAlliance, the most recent addition to the portfolio, is best known for its Selution SLR drug-eluting balloon (DEB). It is the first coronary DEB in the world to receive breakthrough device designation status from the US Food & Drug Administration (FDA). The product, which is in the process of completing its FDA registration, is already available in Europe and certain other markets that accept CE Mark approval.

DEB’s are used in life-threatening situations, typically when cholesterol has built up in the artery walls, creating plaque that narrows the arteries and reduces blood flow to the heart and limbs. A biodegradable DEB is inserted into the artery, where it provides controlled release of drugs intended to alleviate the condition. They work in the same way as drug-eluting stents, but no materials are left behind.

MedAlliance estimates the global DEB market is worth more than $1.5 billion. Cardiovascular diseases are the leading cause of death worldwide. There were 523 million cases in 2019. According to the National Center for Cardiovascular Diseases, there has been continued growth in the number of patients with cardiovascular disease in China. MedAlliance has already begun clinical trials for Selution SLR in China.

“The global market size for medical devices addressing coronary and peripheral diseases has increased in recent years. In particular, we have seen exciting breakthroughs in technological development and clinical adoption in the interventional device space,” said Boon Chew, a managing partner at Trustar, in a statement. He added that MedAlliance has recruited a strong team capable of developing innovative products that lead the market in terms of technology and registration progress.

Haiwen & Partners served as legal advisor to Trustar on the deal.

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• Topics
• Greater China
• GPs
• Healthcare
• Expansion
• China
• CITIC Capital
• Trustar Capital