General Atlantic Invests $150 Million in Asia Medical, Advised by HaoYue Capital

VCBeat (WeChat: vcbeat) has learned that Hong Kong Asia Medical Group Limited (“Asia Medical”) announced today a strategic partnership with General Atlantic, a leading global investment firm. Under the agreement, General Atlantic will invest $150 million in Asia Medical, with Haoyue Capital serving as the exclusive financial advisor. As an industry-leading private healthcare service provider and operator of specialized cardiovascular hospitals, Asia Medical operates all its hospitals under the “Yaixin” brand. This strategic partnership also marks the further expansion of General Atlantic’s investment footprint into China’s healthcare and life sciences sectors.

Founded in Wuhan in 1999, Asia Heart Care currently operates two cardiovascular hospitals in Wuhan and Xinjiang, and jointly manages four cardiovascular centers. In terms of the volume of cardiovascular surgical procedures, its flagship institution, Wuhan Asia Heart Hospital—the first hospital established by Asia Heart Care in Wuhan—has become one of the top three cardiovascular hospitals in China.

In addition to Hubei Province, the hospital provides treatment and surgical services for cardiovascular patients in four neighboring provinces. In 2010, Asia Healthcare acquired the Xinjiang hospital, further expanding its business scope. The hospital has now become the leading specialized cardiovascular hospital in the region.

Asia Healthcare adheres to a patient-centric philosophy and boasts a first-class medical and management team. By continuously investing in clinical innovation, advanced data-driven approaches, and digital healthcare process management, it is well-equipped to address major diseases using modern medical methods. Hospitals under the Asia Healthcare umbrella also employ an effective dual-track management structure that separates clinical care from administrative operations, achieving outstanding results in hospital management.

Xie Junming, Founder and Chairman of Asia Heart Center, stated, “Over the past 19 years, Asia Heart Center has remained dedicated to cardiovascular surgery and medical services for cardiovascular diseases, establishing itself as a trusted healthcare provider in China—a source of great pride for us. We are delighted to partner with General Atlantic, leveraging its specialized resources in the global healthcare sector to continue delivering high-quality medical services to patients in China and beyond.”

Data from the National Center for Cardiovascular Diseases of China shows that cardiovascular disease is the most common chronic non-communicable disease in China and the leading cause of patient mortality. In China’s healthcare market, which is dominated by public hospitals, Asia Healthcare has emerged as one of the top medical institutions in the field of cardiovascular diseases—a rare achievement for a private hospital.

Zhang Chi, Managing Director and Head of China at General Atlantic, stated, “In recent years, China’s healthcare industry has developed rapidly, with growing demand for specialized medical services for cardiovascular diseases. Asia Healthcare not only provides advanced clinical solutions but also boasts a high-caliber founding and management team. General Atlantic is honored to partner with Asia Healthcare to further expand our strategic focus in China.”

This year, Asia Heartcare opened a joint-venture cardiovascular center in Hong Kong and completed the acquisition of a cardiovascular center in Japan. Meanwhile, its second hospital in Wuhan, Wuhan Asia Heart General Hospital, is scheduled to officially commence operations in November 2018. In addition to its cardiovascular specialty, the hospital will establish several departments with strong synergies with cardiology, such as neurology, neurosurgery, pediatrics, and obstetrics and gynecology, offering a wide range of specialized medical services. In the next phase, Asia Heartcare plans to continue developing top-tier hospital management systems and advanced medical technologies, including transcatheter aortic valve replacement (TAVR). Looking ahead, Asia Heartcare aims to gradually evolve into a modern cardiovascular hospital group and expand into international markets through organic growth and strategic acquisitions.

Sun Leifei, Head of Healthcare in China at General Atlantic, stated, “The demand for high-end medical services in China is growing steadily. We are optimistic about the growth prospects of healthcare groups with strong management capabilities. We believe these groups will rapidly expand to meet market demands for upgrades in consumer offerings, technology, and services. General Atlantic will continue to partner with visionary companies across China’s healthcare industry chain, supporting their development into leading enterprises in the sector.”

General Atlantic boasts 38 years of investment experience, having invested in more than 300 growth-oriented companies worldwide and maintained partnerships with entrepreneurs and management teams of industry-leading, high-growth enterprises. As of June 30, 2018, the firm managed $28 billion in assets. Supported by a global team of experts, General Atlantic focuses on investments in four sectors: consumer, financial services, healthcare, and technology. With deep expertise in the healthcare sector, General Atlantic invests in leading healthcare and life sciences companies, including Ginkgo Bioworks, KIMS Hospitals, and Landmark Health. Since 1999, the firm has been committed to expanding its presence in the Chinese market and actively conducting investment operations in China.

Haoyue Capital stated, “Haoyue Capital has completed financing and M&A transactions for more than ten projects in the cardiovascular field, accumulating extensive experience and deep insights in this sector. We are honored to serve as the exclusive financial advisor for the collaboration between Asia Medical Group and General Atlantic. Over the past nineteen years, Asia Medical Group has not only established a leading academic standing, brand recognition, and influence in China’s cardiovascular field but also set a benchmark for socially invested healthcare in hospital management, talent development, and scientific research and education. We believe that as Asia Medical Group expands and advances its international footprint, it will inevitably evolve into a high-caliber medical center with influence spanning across Asia.”

Hong Kong Asia Heart Care Co., Ltd. (“Asia Heart Care”) was established in Wuhan, China, in 1999. It is an industry-leading private healthcare service provider and operator of specialized hospitals focusing on cardiovascular surgery and cardiovascular diseases. Asia Heart Care’s mission is to develop its brand, “Ya Xin,” into a world-class healthcare service provider. Currently, Asia Heart Care operates two directly-owned cardiovascular hospitals in Wuhan and Xinjiang, and jointly manages four “Ya Xin” branded cardiovascular centers across mainland China and Hong Kong, providing comprehensive medical services for the treatment of cardiovascular-related conditions.

General Atlantic (“General Atlantic”) is a global leading growth equity firm that provides capital and strategic support to growing companies. Founded in 1980, General Atlantic’s globally distributed investment teams collaborate closely, combining unique industry insights, long-term investment horizons, and a deep understanding of the drivers of business growth to partner with exceptional management teams worldwide in building outstanding enterprises. General Atlantic has more than 115 investment professionals located in major cities across the globe, including New York, Greenwich, Palo Alto, Beijing, Shanghai, Hong Kong, London, Amsterdam, Munich, Mumbai, Mexico City, São Paulo, and Singapore.

Haoyue Capital was founded in 2013, dedicated to becoming a bridge connecting China’s healthcare industry with capital. Its research and transaction coverage spans multiple sub-sectors, including healthcare services, mobile health, pharmaceuticals, high-value consumables, and medical devices. The Haoyue Capital team comprises senior investment bankers with extensive experience in China’s healthcare sector. They closely monitor market dynamics and investment trends in healthcare, publishing weekly industry reports and curating major healthcare events to interpret new policies and emerging frontiers from a capital perspective.