CITIC PE invests in China's New Journey Hospital

The group operates Beijing New Journey Cancer Hospital, a Sino-foreign joint venture founded in 2011 by Peking University-backed Beijing Cancer Hospital and PE firm New Enterprise Associates (NEA). NEA reportedly held a 70% interest in the JV.

In December 2014, Shenzhen-listed PKU Healthcare Corporation, also backed by Peking University, acquired a 65% stake in Beijing New Journey for $41 million ahead of its official opening to the public. The transaction facilitated a full exit for NEA.

Beijing New Journey wants to establish an international-standard tumor diagnosis and treatment service center, serving China's emerging middle class. The hospital had about 150 beds as of the end of last year.

Following the strategic investment, CITIC PE will leverage its medical resources and management expertise to help accelerate growth. The China-focused GP closed its second US dollar-denominated fund in May of last year at about $1.3 billion.

There have been a string of PE investments in China's hospital space on the back of rising demand from an aging and increasingly affluent population and government reforms intended to bring more private capital into the sector. Most recently, Bain Capital bought a majority stake in Asia Pacific Medical Group (APMG) for $150 million.

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• Topics
• Greater China
• Healthcare
• Expansion
• China
• healthcare
• Citic Private Equity
• Growth capital