Hao Capital forms healthcare JV with TCL Group

The investment was made through SKR, a healthcare portfolio company to which Hao committed capital in 2009. SKR provides medical equipment and related services, with a view to making healthcare more accessible and affordable.

China is currently the world's fourth largest medical equipment market with sales of more than RMB60 billion ($9 billion). Diagnostic imaging equipment accounts for one third of the market, although multinationals are responsible for more than 75% of the sales in this particular segment.

The Chinese government is supporting the development of a domestic companies that can offer alternatives to imported diagnostic imaging equipment. This is part of a $124 billion healthcare reform plan unveiled in 2009.

"We are optimistic about the investment opportunities in China's medical equipment market, especially imaging diagnostics equipment where there's a clear and high growth market for quality, locally developed and manufactured equipment," said Elaine Wong, Partner and co-founder of Hao Capital.

Founded in 2005, Hao currently manages total assets of $500 million across two US dollar-denominated funds. Ticket sizes range from RMB80 million to RMB300 million with target ownership of 10-25%. Its investors include institutions such as J.P. Morgan, Adveq and Goldman Sachs, as well as high net worth individuals.

HAO I, with a size of $100 million, is fully invested and in partial liquidation, while two thirds of HAO II, worth $400 million, has also been deployed and seen some exits, a person familiar with the company told AVCJ in February. The company plans to launch its third US dollar fund later this year.

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• Topics
• Greater China
• Healthcare
• Expansion
• Hao Capital
• healthcare
• Growth capital
• China