Hillhouse Capital Management, a Chinese private equity firm, is reportedly seeking to raise over $1.4bn for a new renminbi healthcare-focused fund. The firm is said to be working to raise the funds from investors including local governments, and has already registered the new renminbi fund in Hangzhou.
The move comes as interest in China from dollar investors appears to be drying up, with Hillhouse reportedly seeking to focus on the healthcare sector. The firm has a strong track record in the healthcare space, having previously invested in companies such as BeiGene, a Chinese biotech firm, and Genor Biopharma, a Chinese clinical-stage biopharmaceutical company.
The new fund will likely target investments in healthcare services, medical devices, and pharmaceuticals, among other areas. Hillhouse’s move to raise a new renminbi fund reflects a wider trend in the Chinese private equity industry, as firms seek to attract more local investors amid a challenging fundraising environment for dollar-denominated funds.
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Hillhouse Capital’s New Healthcare Fund
Hillhouse Capital, a leading Chinese private investment firm, is currently raising a new renminbi fund that will focus on investments in the healthcare sector.
The Financial Times reports that Hillhouse is targeting over $1.4 billion from Chinese investors for the new fund, which is expected to be one of the largest healthcare-focused funds in the country.
The move comes as Hillhouse adjusts to a decline in dollar funding caused by increasing trade tensions between China and the United States.
By raising a renminbi fund, Hillhouse is able to tap into a growing pool of domestic investors who are eager to invest in the country’s healthcare sector.
The healthcare sector in China has been growing rapidly in recent years, driven by an ageing population and rising incomes. According to research by McKinsey, China’s healthcare market is expected to reach $1 trillion by 2020, making it one of the largest healthcare markets in the world.
Hillhouse’s new fund will aim to capitalise on this growth by investing in companies that are at the forefront of healthcare innovation in China.
The fund will target businesses that are harnessing cutting-edge technologies to improve patient outcomes and reduce healthcare costs.
Overall, Hillhouse Capital’s new healthcare fund is a clear indication of the growing interest in China’s healthcare sector.
With its strong track record of successful investments in the country, Hillhouse is well-positioned to take advantage of this trend and generate strong returns for its investors.
The Role of Renminbi in the Fund
Hillhouse Capital Group is targeting over $1.4bn for a new renminbi fund that will focus on investments in the healthcare sector.
The Chinese investment group is looking to raise the funds from Chinese investors, as dollar interest in China dries up.
The new renminbi fund is expected to play a crucial role in Hillhouse’s investment strategy.
By raising funds in renminbi, Hillhouse can avoid currency risks and reduce transaction costs. The fund will also allow Hillhouse to tap into the growing demand for renminbi-denominated investments in China.
Renminbi is the official currency of China and has been gaining popularity as an investment currency in recent years.
The Chinese government has been promoting the use of renminbi in international trade and investment, and has been gradually liberalising its capital markets to allow more foreign investment.
Investing in renminbi-denominated assets can provide investors with several benefits. Renminbi is expected to appreciate over the long term, which can provide capital gains to investors. Renminbi-denominated assets also offer higher yields compared to US dollar-denominated assets, due to the higher interest rates in China.
In addition, investing in renminbi can provide diversification benefits to investors. Renminbi is not highly correlated with other major currencies such as the US dollar and the euro, which can help reduce portfolio risk.
Overall, the new renminbi healthcare fund is expected to provide Hillhouse with a strategic advantage in the Chinese healthcare sector.
By raising funds in renminbi, Hillhouse can access a growing pool of renminbi-denominated capital and reduce currency risks. The fund will also allow Hillhouse to tap into the growing demand for healthcare investments in China, which is driven by an ageing population and rising healthcare expenditure.
Targeted Opportunities in Healthcare
Hillhouse Capital is looking to raise over $1.4bn for a new renminbi fund that will focus on investments in the healthcare sector.
The private investment firm is targeting Chinese investors for the new fund, which will reportedly invest in healthcare companies that are well-positioned to benefit from the growing demand for healthcare services in China.
The healthcare sector in China is experiencing significant growth, driven by factors such as an ageing population, increasing urbanisation, and rising incomes.
As a result, there are a number of opportunities for investors in this space, including:
Pharmaceuticals and biotechnology: The pharmaceuticals and biotechnology sectors are expected to benefit from increasing demand for innovative drugs and treatments, as well as from the government’s efforts to improve the quality and accessibility of healthcare services.
Medical devices and equipment: The medical devices and equipment sector is expected to benefit from increasing demand for advanced medical technology, as well as from the government’s efforts to upgrade the country’s healthcare infrastructure.
Healthcare services: The healthcare services sector is expected to benefit from increasing demand for high-quality healthcare services, particularly in areas such as elder care and chronic disease management.
Hillhouse’s new healthcare-focused fund will likely target companies that are well-positioned to benefit from these trends, with a particular focus on underperformers that have the potential to turn around their operations and achieve strong growth.
Overall, the healthcare sector in China offers attractive investment opportunities for investors who are willing to take a long-term view and are able to identify companies with strong growth potential. With its new renminbi healthcare-focused fund, Hillhouse Capital is well-positioned to take advantage of these opportunities and generate strong returns for its investors.
