Sanbo Brain Hospital Completes Over RMB 800 Million Series B Financing, One of the Largest Deals in China's Healthcare Sector in Recent Years

VCBeat (WeChat ID: vcbeat) has learned that Sanbo Brain, a renowned specialized hospital group in neurology, recently announced the completion of its Series B equity financing, raising over RMB 800 million. The round was led by Taikang Insurance Group, with participation from iCapital Future Industry Fund, GF Xinde, Hongding Investment, Pudao Medical, Binghong Capital, and Puhong Capital, among others. iCapital served as the exclusive financial advisor to Sanbo Brain in this transaction.

Sanbo Brain, established in 2004, has grown over 16 years into a well-known domestic chain medical group specializing in neurology. It operates seven large hospitals (including one under construction) across six provinces and municipalities: Beijing, Chongqing, Hunan, Fujian, Henan, and Yunnan. Its flagship hospital, Sanbo Brain Hospital of Capital Medical University, is among the top neurological specialty hospitals in China. In the medical service capability rankings published by the Beijing Municipal Health Commission, it has consistently ranked among the leaders in neurosurgery alongside Tiantan Hospital and Xuanwu Hospital for many consecutive years.

Since its establishment, Sanbo Brain has consistently adhered to the development path of “integration of medical care, teaching, and research.” Centered on renowned neurology experts including Luan Guoming, Yu Chunjiang, Shi Xiang’en, Wang Baoguo, Yan Changxiang, Wu Bin, Lin Zhixiong, and Fan Tao, the institution has gathered a large cohort of medical elites possessing profound medical knowledge, extensive clinical experience, and modern medical concepts. This has laid a solid foundation for delivering high-quality medical services, improving systematic talent training mechanisms, and advancing discipline construction and scientific research.

Regarding this financing round, Zhang Yang, Chairman of Sanbo Brain Hospital Management Group Limited, stated: “We extend our gratitude to investment institutions such as Taikang Insurance Group and GF Xinde for their recognition of Sanbo Brain. For private healthcare institutions like Sanbo Brain, which feature both high technical barriers and a group-based chain operation model, development is inseparable from the assistance and support of social capital. With the facilitation of China Renaissance Capital, the successful completion of this financing fully demonstrates the capital market’s recognition of the Sanbo brand and its value, which will effectively promote Sanbo’s sustainable development. In the future, Sanbo will increase investments in scientific research translation, talent reserves, and medical hardware, strengthen its brand, systematically advance its regional network layout, achieve scaled rapid growth, and help more patients regain their health.”

As the lead investor in this funding round, Xu Jun, Head of Strategic Equity Investment at Taikang Asset Management, stated, “The neurology specialty market is large and features high technical barriers. Through nearly two decades of solid accumulation, Sanbo’s team has grown into a leader among private neurology specialty providers in terms of technology, brand, talent pipeline, and scale. Taikang is delighted to serve as the lead investor in this round, working alongside other shareholders to support Sanbo’s further growth and expansion. In the future, Taikang will also actively explore collaborations with Sanbo in areas such as health insurance and health management, delivering superior service experiences to our insurance customers.”

As a co-investor in this round of financing, Xu Huaze, Managing Partner of Capital Future Industry Fund at iCapital, stated, “Over the 16 years since its establishment, Sanbo Brain has accumulated successful experience in operations and expansion, solidifying its position as a leading brand in the neurology specialty. As a model for private capital participation in healthcare, Sanbo has put into practice a business philosophy centered on top-tier neurology experts, integrating medical care, teaching, and research. iCapital will fully support Sanbo’s nationwide expansion and assist in building it into a platform enterprise within China’s private healthcare services industry.”

As a co-investor in this round of financing, Dr. Zhu Xiao, Director of the Medical Investment Department at GF Xinde, stated: “Sanbo Brain is a healthcare group with an excellent reputation. Leveraging its pool of top-tier medical experts and focusing on hospital management and brand operations, it has pioneered a novel hospital management model. Looking ahead, the GF Xinde medical investment team looks forward to supporting Sanbo Brain’s continued growth by assisting with capital operations such as hospital investment and expansion.”

As a co-investor in this round of financing, Le Guoqiang, Partner at Binghong Capital, stated: “The 21st century is the ‘Era of Brain Science.’ Neurosurgery is one of the most precise and complex disciplines in clinical medicine, with exceptionally high barriers in terms of talent, technology, and brand reputation. After more than a decade of development and accumulation, Sanbo Brain Hospital Management Group Limited has undoubtedly become a shining gem in China’s private specialized healthcare sector. It is well known that Chinese individuals exhibit significantly higher sensitivity to hypertension in their cerebral vasculature compared to Western populations, leading to a markedly higher incidence of stroke among Chinese people. Given the enormous patient population in China, we are optimistic about Sanbo Brain’s deep cultivation and meticulous operations in neurosurgery, neurology, neurological rehabilitation, and other related fields, as it continues to grow and strengthen while serving patients.”

As a co-investor in this round of financing, Lu Yancen, Founding Partner of Pudao Healthcare, stated, “Sanbo Brain is a top-tier private specialty hospital for critical care in China and a leading brand in the neurology specialty. The aging populations in China and globally have generated substantial demand for neurological services. Leveraging China’s foremost neurology experts and an efficient operational management system, Sanbo Brain has achieved rapid growth in discipline development, operational management, and hospital construction. Pudao Healthcare is honored to become a shareholder of Sanbo Brain and will take this opportunity to foster long-term strategic cooperation, support its future development, and contribute expertise in medical technology, capital markets, and operational management. This investment in Sanbo Brain will further enrich Pudao Healthcare’s ecosystem.”

As the financial advisor for this transaction, Li Gang, Partner at China Renaissance Capital, stated: “Sanbo Brain is a benchmark enterprise in China’s private healthcare sector and a crown jewel among private hospitals. Over the years, Sanbo has adhered to the philosophy of ‘Excellence in Medical Care, Education, and Research,’ carving out a distinctive development path in the field of specialized medical services. China Renaissance Capital is honored to have assisted Sanbo Brain in completing this financing round, supporting the company in accelerating its brand building and nationwide network expansion, further consolidating its industry leadership, and helping more patients regain their health in the field of neurological disorders. Meanwhile, given the complex structure of this transaction and its status as one of the largest deals in the healthcare services sector in recent years, the China Renaissance team fully leveraged its top-tier technical expertise and industry experience to ensure the successful completion of this financing. We look forward to continuing to contribute our efforts to the growth of more high-quality enterprises in the healthcare services sector.”

Taikang Insurance Group is a large financial and insurance services conglomerate encompassing three core businesses: insurance, asset management, and healthcare and elderly care. As of the end of 2019, Taikang Insurance Group managed assets exceeding RMB 1.7 trillion, ranked on the Fortune Global 500 list for two consecutive years, placed fourth among China’s top ten life insurers, and was the largest corporate annuity investment manager in the Chinese market. Taikang has consistently adhered to the principles of “specialization, market orientation, and standardization,” deeply cultivating the life insurance industry chain and building an integrated business model featuring “vibrant elderly care, premium medical services, excellent wealth management, and end-of-life care.” Actively implementing the Healthy China strategy, Taikang integrates insurance payment with healthcare and elderly care services to construct a comprehensive health industry ecosystem. Furthermore, Taikang extensively invests in companies across the big health industry chain, exploring strategic layout within the health industry ecosystem.

China Future Industry Fund is the first RMB-denominated fund launched by China Renaissance, a leading new-economy investment bank in China. The fund focuses on growth-stage investment opportunities in leading companies within the new economy sector, with particular attention to the healthcare, consumer, and TMT (Technology, Media, and Telecommunications) industries. To date, China Renaissance manages one U.S. dollar fund and one RMB fund, with portfolio investments including Missfresh, Arrail Dental, Panacea Medical, and Freenome. China Future Industry Fund currently maintains offices in Beijing and Shanghai.

GF Xinde was established in 2008 with a registered capital of RMB 2.8 billion, operating as a wholly-owned private equity subsidiary of GF Securities. As of the end of February 2020, the total assets under management by GF Xinde exceeded RMB 30 billion. In the healthcare investment sector, the company has successfully managed multiple VC/PE growth-oriented funds in both RMB and USD, and has co-established buyout funds with listed companies to participate in overseas markets.

Binghong Capital, established in 2010, has set up business offices in Beijing, Shanghai, Shenzhen, and Henan Province. With investment activities spanning across China, it has grown into a leading professional equity investment firm in the country. The company currently manages over ten funds, with assets under management nearing RMB 4 billion, focusing on investments in healthcare, consumption upgrading, and other sectors. To date, it has completed nearly 80 project investments, with almost 20 portfolio companies successfully going public through initial public offerings (IPOs).

Pudao Healthcare, established in 2018, is an innovative long-term institutional investor dedicated to the healthcare sector. Guided by the philosophy of “Pudao for Public Welfare,” its partners comprise professionals from top-tier global investment institutions and renowned entrepreneurs in China’s healthcare industry, leveraging extensive industry networks and technological innovation resources across the global and Chinese healthcare markets. The team possesses rich experience in industrial M&A, operational management, and capital markets. Currently, Pudao Healthcare focuses on leading enterprises in selected high-potential segments of the healthcare industry, including healthcare services, pharmaceutical logistics and technology, biomedical R&D, elderly care, and healthcare real estate. By collaborating closely with entrepreneurs and founders, it aims to jointly build the Pudao Healthcare ecosystem.

China New Economy Investment Bank Leader, Focusing on Global TMT, Consumer and Health Industries. In addition to investment banking services, Yikai Capital is managing a RMB fund and a USD fund. The company has branches in Beijing, Shanghai, Los Angeles, and San Francisco, and holds a license for the U.S. securities market.

Healthcare is a key focus area and core strength of China Renaissance, which has ranked as the new economy investment bank with the highest number of healthcare industry transactions in China for three consecutive years. Meanwhile, China Renaissance boasts the largest, most professional, and most comprehensively integrated healthcare investment banking team in the country.