Warburg Pincus invests in Shanghai hospital – Exclusive

The investment comes from the firm's $13.4 billion buyout fund, Warburg Pincus XII.

An affiliate of global private equity firm Warburg Pincus has completed an investment in Shanghai-based gynaecology and paediatrics hospital chain UIB for an undisclosed amount, Private Equity International has learned.

The investment comes from Warburg Pincus XII, the firm’s latest buyout fund which closed on $13.4 billion in 2015. That fund has secured a $750 million commitment from the Washington State Investment Board, $240 million from New York State Common Retirement Fund, $175 million from North Carolina State Treasury and $87 million from State of Wisconsin Investment Board, according to PEI Research & Analytics.

UIB currently owns the UIB International Postpartum Care Center and the Ruizhitang Women’s Healthcare Center, and plans to launch the Shanghai Everbetter Maternity Hospital and the Shanghai Everbetter Pubin Children’s Hospital in 2016. The firm’s investment will be used to provide many tailored service packages, such as a unique ‘six-in-one’ one-stop home style maternity healthcare service model, benefiting the whole family, UIB founder and chairman Zixuan Geng said.

“China’s healthcare services sector is undergoing a profound transformation as more privately-own hospital brands emerge to cater to the growing need for premium healthcare services and treatment. We are excited to partner with the management team of UIB. They have deep industry knowledge and a solid track record of building businesses in the healthcare services sector,” Min Fang, managing director of Warburg Pincus said.

Warburg Pincus has raised 15 private equity funds, which have invested more than $55 billion in over 750 companies in more than 40 countries. Since inception, the firm has invested more than $9 billion in healthcare companies globally.

Warburg Pincus was one of the first private equity firms that started investing in China in 1994. Today, it has invested over $6 billion in supporting the growth of more than 90 Chinese companies, including Amcare, Baosteel Gases, CAGR, CAR Inc., China Huarong, China Kidswant, e-Shang Redwood, Evercare, Liepin.com, Ucar, Uxin and ZTO.