Singapore-based healthcare firm Novena Global Lifecare, together with Chinese healthcare private equity firm Sinopharm Capital and investor Cedarlake Capital has raised a US$150 million healthcare-focused fund targeting Southeast Asian businesses.
Known as the Sino-Singapore Healthcare Fund, the vehicle will be used to invest in companies involved in medical services, biomedical projects, mature drugs, and precision medicine sectors.
At the same time, Sinopharm and Cedarlake have also made a US$20 million investment in Novena Global, which marks the first Singapore healthcare investment for both parties.
Founded in 2010 by former investment bankers and cousins Terence and Nelson Loh, Novena Global Lifecare is a subsidiary of DORR Group, a private investment firm that focuses on consumer retail technology and healthcare sectors in Asia.
The company is an integrated healthcare platform and medical aesthetics player with more than 250 clinics and sales locations operating in Singapore, China, Hong Kong, South Korea, Taiwan, Indonesia, India, and Malaysia.
Novena Global hopes the partnership will allow it to expand more strategically in China, tapping into Sinopharm’s expertise in China’s healthcare sector development, industrial operation, as well as existing distribution networks.
“This is the first healthcare fund between China and Singapore, and it will allow us to create a bigger platform for healthcare companies,”
said Nelson Loh.
“We can help established players that want to expand out of the Southeast Asia market to enter the Chinese market, while the fund gives Chinese investors a getaway to Southeast Asia.”
Meanwhile, Novena Global will use the US$20 million investment to grow the Singapore aesthetic healthcare firm’s existing business in China.
“Sinopharm Capital has abundant resources in China’s pharmaceutical industry, which can help Novena develop the Chinese medical aesthetics market, broaden business channels and access China’s healthcare market worth more than US$600 billion,”
said Wu Aimin, President of Sinopharm Capital.
Aside from growing Novena Global’s business in China, the move will also enable Sinopharm Capital to expand its presence in Southeast Asian markets to support its growing healthcare and wellness sectors and benefit the people of all countries along the Belt and Road Initiative, added Bao Yi, the Founder of Cedarlake Capital.
Moving forward, Nelson Loh added that Novena Global Lifecare will continue to innovate and disrupt the lifecare industry around the region.
“This is by focusing on building partnerships, acquisitions, investments, and collaborations to create a pan-Asian holistic medical ecosystem that will improve the wellness healthcare of consumers across Asia.”