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Establishment of a Healthcare Fund to Capture Demand from the Growing Chinese Healthcare Market

Jun. 25, 2019


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga), China Resources Group ("CR", Head Office: Hong Kong, Chairman: Fu Yuning), and HOPU Investments ("HOPU", Head Office: Beijing, Chairman: Fang Fenglei) have agreed to establish a joint venture, CMH Healthcare Holding Co., Limited ("CMH Healthcare"), through their respective subsidiaries, and to establish a joint investment company for fund schemes, CMH Healthcare Fund L.P. ("CMH Healthcare Fund") through CMH Healthcare, and concluded related contracts today.

With a total scale of about US$1 billion (approximately ¥108 billion), CMH Healthcare Fund plans to invest in leading medical services providers (such as clinics, specialty hospitals, and healthcare facility managers) mainly in China, as well as in healthcare-related business in China and other countries. It aims to provide solutions from an industrial point of view to various issues facing the Chinese healthcare market, and at the same time, capture demand from the accelerated growth of the market. With Mitsui, CR, and HOPU also taking part in investments through their subsidiaries, CMH Healthcare Fund plans to invite investments from investors globally.

Established in Hong Kong in 1938, CR is one of the most influential and leading diversified conglomerates, with business in various areas, including consumer products, healthcare, energy services, and real estate. It is also one of the largest players in the Chinese healthcare market. Through its subsidiaries and affiliates, it has been engaging in a wide range of healthcare business, including operation of over 110 medical institutions (the largest scale in China), as well as senior care business, and pharmaceutical and pharmacy business.

HOPU is a leading Asian alternative asset manager with principal offices in Beijing, Hong Kong, and Singapore. It specializes in creating proprietary investments driven by its unique network and strong fundamental analysis capabilities. Its industry focuses include consumer, technology, healthcare, financial services, and logistics/real estate. Since its inception in 2008, HOPU has managed more than US$10 billion of capital for global institutional clients. HOPU differentiates itself from other PE funds as a solution provider with deep China insights and resources.

While the healthcare market in China is huge and has great potential, with a forecast of medical expenses reaching ¥200 trillion in 2030, there has been a supply-demand gap arising, in terms of both quality and quantity of medical care, along with a rapid increase in medical expenses due to the aging of society and the development of the public insurance system.

Mitsui has positioned the establishment of CMH Healthcare Fund as a part of its key regional strategy for establishing Asia's largest healthcare ecosystem, centered on IHH, which is the biggest private hospital group in Asia. By leveraging synergies with its existing business, Mitsui will pursue expansion of its business platform in the Chinese market, which is expected to grow further, while contributing to further development of healthcare to support creation of a society where people can live healthy, prosperous lives.

Profile of CMH Healthcare

Company Name CMH Healthcare Holding Co., Ltd
Head Office Hong Kong
Establishment June 2019 (Planned)
Shareholders Mitsui 30%, CR subsidiary 40%, HOPU subsidiary 30%
Business Activities Management and operation of CMH Healthcare Fund

Profile of CMH Healthcare Fund

Company Name CMH Healthcare Fund L.P.
Head Office Cayman Islands
Establishment June 2019 (Planned)
Fund Size US$1 billion (Approximately ¥108 billion)
Business Activities Investment fund specialized in the Chinese healthcare market

Profile of CR

Company Name China Resources Group
Head Office Hong Kong
Establishment 1938
Representative Fu Yuning
Total Assets RMB1.44 trillion (Approximately ¥22.5 trillion)
Business Activities Business in consumer products, healthcare, energy services, real estate, technology, finance, and other areas.

Profile of HOPU

Company Name HOPU Investments
Head Office Beijing, China
Establishment 2008
Representative Fang Fenglei
Assets Under Management Over US$10 billion (Approximately ¥1.1 trillion)
Business Activities Management and operation of investment funds

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Satoshi Wanouchi
Telephone: +81-3-3285-6645
Facsimile: +81-3-3285-9819