Two major international healthcare investment companies announcement their merger plans on Wednesday.
The partners — based in London GHO Capital and based in Singapore Radio-Canada Group – said the deal would combine $21 billion in assets under management, creating what they call “the world’s largest dedicated healthcare investment firm.”
The new entity will employ more than 200 employees across 13 offices in North America, Asia and Europe. Companies noted that these regions account for approximately 90% of all healthcare research and development spending.
GHO primarily invests in healthcare services, pharmaceuticals and medical technology in Europe and North America, while CBC has built a broad investment platform spanning the Asian biotechnology, life sciences and healthcare delivery sectors.
Last fall, GHO farm its fourth fund, which totaled $2.9 billion and brought the firm’s total assets under management to $10.5 billion. CBC/Radio-Canada has closed its latest major fund… his fifthwhich totaled $1.67 billion – in 2022. The company manages $10.8 billion in assets.
By combining their businesses, the companies aim to create a more globally connected investment platform – which they say will help them support healthcare companies at multiple stages of growth and in major international markets.
Mike Mortimer, co-founder and CEO of GHO, and Fu Wei, founder and CEO of CBC, will serve as co-CEOs of the combined entity.
“This combination aims to connect leading healthcare companies and innovations with the world’s largest and most established markets and global capital pools – bringing together complementary strengths in Asia Pacific, North America and Europe,” Wei said in a statement.
The deal is expected to close early next year, subject to customary closing conditions and regulatory approvals.
The merger joins two massive investment firms at a time when private equity firms around the world are seeking larger platforms and broader geographic reach. As competition for deals heats up and fundraising becomes more difficult, many companies looking to expand their scale and strengthen their presence in global private markets.
Photo: Aerial perspective images
