Sanpower Group Launches Three Healthcare Funds Within a Year, Raising Total Capital of RMB 20 Billion
On April 20, Sanpower Group announced that its subsidiary, Sanpower International Healthcare Management Co., Ltd., had jointly established the Sanpower Benyu Health Industry Fund with Shanghai Benyu Investment Management Co., Ltd. With a total size of RMB 10 billion, this marks the establishment of the third health-focused fund under Sanpower Group and represents the largest healthcare industry fund raised by the group to date.
Three Health Funds Established by Sanpower Group
On June 15, 2015, Sanpower International Healthcare Management Co., Ltd. (hereinafter referred to as “Sanpower Healthcare”), a subsidiary of Sanpower Group, and Shanghai Yinlai Equity Investment Fund Management Co., Ltd. (hereinafter referred to as “Shanghai Yinlai”) formally signed a strategic cooperation agreement at the headquarters of Sanpower Group to jointly establish the Sanpower-Yinlai Healthcare Investment Fund.
Fund Name: Sanbao Yinlai Medical Investment Fund
Establishment Date: June 15, 2015
Fund Size: RMB 5 billion
Initiator: Sanpower International
Partner: Shanghai Yinlai
Investment Areas: Hospital investment, mobile internet healthcare, elderly care services, stem cell research and applications, medical aesthetics, and other health-related sectors.
On September 16, 2015, Nanjing Xinjiekou Department Store Co., Ltd. (Nanjing Xinbai) issued an announcement stating its intention to establish a private equity fund management company in partnership with Shanghai Innovation Investment Co., Ltd. and Shanghai Kangcheng Hospital Management Consulting Co., Ltd. The newly formed entity would serve as the general partner to initiate a limited partnership equity investment fund focused on investments in the broader health and wellness sector, tentatively named the “Xinbai Innovation Health Investment Fund,” with a target fund size of RMB 5 billion.
Fund Name: New Bai Innovation Health Investment Fund
Date of Establishment: September 16, 2015
Fund Size: RMB 5 billion
Initiator: Nanjing Xinjiekou Department Store (Sanpower Holdings)
Partners: Shanghai Innovation, Shanghai Kangcheng
Investment Areas: Mobile Internet Healthcare, Hospital Investment, Elderly Care Services, Stem Cell Research and Applications, Medical Aesthetics, Precision Cell Therapy, Regenerative Medicine, Genetic Testing and Therapy, Healthcare Informatics, Diagnostic O2O (Online-to-Offline), Medical E-commerce, Chronic Disease Management, Rehabilitation Management, Health Checkups, Emergency Rescue, Smart Medical and Rehabilitation Devices, and Other Health-Related Fields.
On April 20, 2016, Sanpower International and Shanghai Benyu jointly established the Sanpower Benyu Health Industry Fund.
Fund Name: Sanpower Benyu Health Industry FundEstablishment Date: April 21, 2016
Fund Size: RMB 10 billion
Initiator: Sanpower International
Partner: Shanghai Benyu
Investment Sectors: Including medical services, pharmaceutical products, health care products, nutritional foods, medical devices, health appliances, leisure and fitness, health management, and health consulting. Priority investment regions are first- and second-tier cities in China, as well as areas with unique resource advantages.
From 2015 to 2016, Sanpower Group established three health-focused funds with a total capital scale of approximately RMB 20 billion, covering more than 26 sectors within the healthcare industry.
According to VCBeat, the successful establishment of the Sanpower Benyu Health Industry Fund is attributable to the Tripartite Cooperation Framework Agreement signed in February this year by Sanpower International, Jiangsu Province Hospital, and Shanghai Benyu. Under this agreement, the three parties will engage in comprehensive collaboration across healthcare sectors including medical care, nursing, elderly care, and rehabilitation, jointly building a cluster industrial center characterized by leading-edge technology, premium quality, and excellent services. This center will cover areas such as precision disease diagnosis and treatment, chronic disease rehabilitation and prevention, elderly care and nursing management, and life sciences research. By introducing domestic and international professional medical, nursing, and management teams along with cutting-edge core technologies, the center aims to meet the health needs of patients at various levels, provide more efficient modern hospital management models and higher-quality, convenient high-end medical services, and explore new models for the cooperative construction and development of public hospitals and social capital.
It is reported that Phase I of the cluster’s industrial center is planned to include specialized centers for oncology treatment, assisted reproduction, pediatrics, ophthalmology, and plastic and cosmetic surgery. In line with future development trends, the scope of services may be further expanded to establish a high-end medical service hub integrating clinical care, teaching, and scientific research. This project will also serve as the first key demonstration initiative launched following the establishment of the Sanpower Benyu Health Industry Fund.
Sanpower Group’s Trinity Layout in the Big Health Sector
On Sanpower Group’s official website, the industrial planning for the healthcare sector is clearly delineated, with “health and elderly care,” “biomedicine,” and “hospital management” forming a tripartite structure that constitutes Sanpower Group’s “Grand Health” industrial layout. According to the current classification of Sanpower Group’s investment projects: Natali, Natali (China), Anktong, Miao Health, and Macolin all fall under the health and elderly care segment; China Cord Blood Corporation, acquired by its subsidiary Nanjing Xinjiekou Department Store Co., Ltd., belongs to the biomedicine segment; while Xuzhou People’s Hospital and Xuzhou North District Joint-Stock Hospital are categorized under the hospital operations segment.
2012–2016: Sanpower Group’s Investment Trends in the Healthcare Industry
In 2012, Sanpower Group acquired Ankangtong, a leading provider of home-based elderly care services in China, successfully entering the home-based elderly care sector.
In April 2014, Sanpower Group acquired MecoX, an e-commerce platform for omnichannel health and beauty products and services, for $39 million.
In April 2014, Sanpower Group acquired an 80% controlling stake in Xuzhou People's Hospital.
In December 2014, Sanpower Group acquired Natali Seculife Holding Ltd., Israel’s largest home healthcare service provider, for $70 million, introducing advanced business models and management expertise to China to enhance its competitiveness in the elderly care sector.
In January 2015, Sanpower Group signed a strategic cooperation agreement with Jiangsu Province Hospital. The two parties will carry out strategic cooperation in the fields of medical care, elderly care, and health under Sanpower Group, focusing on operational collaboration, technical support, and resource sharing.
In November 2015, Nanjing Xinjiekou Department Store, under the Sanpower Group, spent RMB 11 billion to acquire CO Group, China’s largest umbilical cord blood storage enterprise, and the Shandong Umbilical Cord Blood Bank, thereby becoming the world’s largest umbilical cord blood bank operator.
In February 2016, Sanpower International Healthcare Management Co., Ltd., under the Sanpower Group, signed a tripartite framework cooperation agreement with Jiangsu Province People’s Hospital and Shanghai Benyu Health Management Consulting Co., Ltd. to jointly enter the big health industry;
In April 2016, Miao Jiankang, a mobile health management platform under Sanpower Group, completed its Series A financing round of RMB 100 million, led by Ronghui Capital, a subsidiary of Sunshine Insurance Group.