The investment arm of Chinese drug maker Sinopharm has partnered with the pharmaceutical unit of Fosun – China’s largest privately-held conglomerate – to launch an RMB1bn ($157m) private equity fund that will invest in the healthcare industry.
Investors in the Shanghai Sinopharm Private Equity Fund include Fosun Pharmaceutical and Sinopharm itself, which owns an equity interest of over 30 per cent in Sinopharm Capital, the general partner.
Sinopharm said it will invest RMB50m in the new fund, an amount that will be matched by Fosun Pharmaceutical. Outside investors are expected to commit an additional RMB845m to the vehicle.
Sinopharm Capital will commit RMB5m to the fund, which will command the traditional two per cent management fee and 20 per cent carried interest.
The fund will have a particular focus on high-growth businesses involved in medical or pharmaceutical manufacturing and distribution, medical equipment, pharmaceutical research and development, and medical and pharmaceutical services.
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