Fidelity International has launched a China Healthcare fund, via its global venture capital subsidiary.
The US$250m China Healthcare fund has been launched to focus on therapeutics, healthcare services, healthcare IT/digital health, and MedTec by Eight Roads Ventures, the proprietary investment arm of Fidelity International.
This is the fifth fund, launched by the venture capitalist with the first four China funds all including a strong healthcare remit.
Eight Roads Ventures, said in a statement that it also plans to launch a China-dedicated technology fund. The China healthcare fund will allocate 40% of the capital in therapeutics, betting on what it believes will be a boom in innovative drugs in China.
Beijing has been initiating an ambitious policy reforms to invigorate healthcare, part of efforts to meet rising demand for quality medical services.
China has forecast total healthcare spending will surge to 8 trillion yuan (US$1.2trn) by 2020, as the country tries to cope with a boom in its ageing population.
That has created a number of investment opportunities in the region. Shuang Rongqing, a veteran private equity investor, last month launched a US$150m cross-border medical device fund aimed at tapping into China’s demand for overseas high-tech medical equipments.
Eight Roads Venture has backed innovative China healthcare companies since 1995. During this period, it has invested in more than 100 healthcare companies, over 30 of which are in China, it said.