• New investment proceeds of up to US$20 million into Novena Global Lifecare will be used to grow existing China and Southeast Asia healthcare business; Novena Global Lifecare will leverage Sinopharm Capital’s extensive network and resources to expand in China
• Landmark deal is Sinopharm Capital’s 1st ever investment in a Singapore healthcare company
• Together with Cedarlake Capital, an international PE firm and cross-border investment expert, the three will create a US$150 million fund to invest in SEA’s medical services, biomedical projects, mature drugs and precision medicine sectors
Singapore, 21 June 2019 – Novena Global Lifecare (the “Company”), an integrated healthcare platform in over 250 clinics and sales locations and one of the largest aesthetic healthcare players globally, today announced that Sinopharm Capital Co., Ltd. (“Sinopharm Capital”) and Cedarlake Capital Group (“Cedarlake Capital”) have made a strategic new money investment of up to US$20 million into the Company, in its latest round of fund raising for growth. Separately, the three parties will also create a new Sino-Singapore Healthcare Fund with a target size of US$150 million, which will primarily invest in a portfolio of companies involved in medical services, biomedical projects, mature drugs and precision medicine in Southeast Asia.
New equity investments by renowned investors
Sinopharm Capital is a professional equity investment institution focusing on the field of healthcare, which is mainly established by China National Pharmaceutical Group Corporation (“Sinopharm”) and Sinopharm Capital’s management team. The investment by Sinopharm Capital into Novena Global Lifecare is Sinopharm Capital’s first ever investment in a Singapore healthcare company.
Mr. Wu Aimin, President of Sinopharm Capital said, “We are optimistic about the Southeast Asia medical aesthetic market. Novena Global Lifecare is one of the largest medical aesthetics enterprises in Singapore and even in Southeast Asia. They manage nearly 250 clinics and sales locations worldwide. Its mature brand, products, management and standard operating procedures (SOP) have been established for sustained expansion. 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.”
Joining this round of fund raising is Cedarlake Capital, an international private equity firm that specializes in cross-border investment and advisory. Its team of over 20 investment professionals and partners have led some of the most renowned cross-border investment deals between Chinese and Western companies, including Geely’s acquisition of a 9.7% stake in Daimler in 2018.
Founded in 2016 by Mr. Bao Yi, former Chief Executive Officer of Morgan Stanley’s securities business in China, Cedarlake Capital partners top global industry and financial leaders and invests in advanced enterprises and projects with clear synergy from connecting major economies and markets. The strategic investment is made through one of the managed private equity funds by Cedarlake Capital, and in line with its strategy of investing in companies that fuel China’s industrial, consumption and structural upgrades.
Mr. Bao Yi, Founder and Chairman of Cedarlake Capital, said: “We are delighted to partner Sinopharm Capital in its strategic investment in the Sino-Singapore Healthcare Fund and Novena Global Lifecare as we believe there is an immense opportunity to create win-win cross-border opportunities. Besides growing Novena Global Lifecare’s position and offerings in China that will benefit the living standards of Chinese consumers, the mutually-beneficial cooperation will also enable Sinopharm Capital to expand its presence in Southeast Asian markets to support their growing healthcare and wellness sectors and benefit the people of all countries along the Belt and Road Initiative.”
Evolve Capital Asia and Brocade River Merchants are the advisors of Novena Global Lifecare for these two transactions with Sinopharm Capital and Cedarlake Capital.
Tapping growth in China and the region
Founded in 2010, Novena Global Lifecare is a subsidiary of DORR Group, a private investment company focusing on consumer/retail, technology and healthcare sectors in Asia, which was co-founded by former investment bankers and cousins Nelson Loh and Terence Loh.
Tapping on the strong demand for healthcare, wellness, aesthetic services and products in Asia, the DORR Group has established a compelling investment platform and an experienced team with a proven track record in building the Company into one of the largest integrated medical healthcare and aesthetic groups in the region, with presence in Singapore, China, Hong Kong, South Korea, Taiwan, Indonesia, India and Malaysia.
Currently, Novena Global Lifecare has over 250 clinics and sales locations across 20 countries and drives a US$100 million revenue portfolio that provides lifecare management solutions tailored to Asian demographics to help customers in their journey of well-being across their life stages. To date, the Company’s key aesthetic brand NOVU Aesthetics has also established a track record of more than seven million procedures performed worldwide and over two million patients in international patient database.
Mr. Nelson Loh, Executive Chairman and Co-Founder of DORR Group and Novena Global Lifecare said, “We are delighted with the investments by Sinopharm Capital and Cedarlake Capital as they are leading institutions in their respective fields. Their investment is a ringing endorsement of our business model in Asia and our global best in class technology and practices. With their endorsement and deep resources in China, we will continue to innovate and disrupt the lifecare industry around the region, 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, such as countries like Vietnam which has a growing middle-class.”
Sinopharm has built a nationwide logistic and distributing network for drugs and medical devices and equipment, including four logistic hubs, more than 40 provincial-level centres and over 230 municipal-level logistic sites. By establishing the smart medical service system, Sinopharm delivers quality services to more than 230,000 corporate clients.
Mr. Terence Loh, CEO and Co-Founder of DORR Group and Novena Global Lifecare said, “We have grown Novena Global Lifecare rapidly in less than a decade, and the NOVU business is now a leading aesthetics practice with a global footprint of more than 100 clinics and 150 sales locations in 40 cities around the world. China is a huge market and we believe we are well positioned to seize opportunities especially in its highly fragmented aesthetic healthcare market. There’s definitely room for a well-run, well-funded integrated practice that provides affordable and accessible healthcare and medical aesthetics services to a large number of people.”