CDIB Capital Group (CCG), a subsidiary of China Development Financial Holding Corp. (CDF, TWSE:2883), officially launched the CDIB Yida Healthcare private equity Enterprise fund at end-2019. The fund’s first-round commitment of Rmb 760mn will be aimed at the three objectives of growing the presence of Taiwan’s advanced biomedical tech in the Greater China market, facilitating enterprise upgrade and transitioning efforts for medical device, service and pharmaceutical firms in mainland China, and bringing innovations from the cross-strait platform into the global market.
The CDIB Yida Healthcare Private Equity fund was jointly established by CCG and Jiangsu Govtor Capital Group via a co-founded joint venture, CDIB Yida Private Equity (Kunshan) Enterprise, based in Kunshan, Jiangsu Province, that oversees the operations of the fund. The December launch of the CDIB Yida Healthcare private equity fund in Kunshan was a hyped event with high-profile appearances from Deputy Mayor Mr. Song Deqian, Deputy Director of Kunshan New & High-tech Industrial Development Zone (KSND) Management Committee Mr. Kong Weihua, and Govtor Capital President Mr. Yang Qingfeng to celebrate the founding of a platform for cross-strait collaborations.
While addressing the launch event, President of CDF Mr. Alan Wang shed light on the fact that CDF is currently the only financial holding corporation in Taiwan with government approval to establish private equity funds and asset management firms in mainland China. In addition to CDIB Private Equity (Fujian) fund, CDIB Yida Private Equity (Kunshan) fund, CCB Life Insurance Co Ltd, KGI Bank’s co-founded JiangSu Suyin KGI Consumer Finance Co. with the Bank of Jiangsu (in process), CDIB Yida Healthcare Private Equity Enterprise will be the latest addition to CDF’s mainland portfolio. Having celebrated its 60th anniversary in 2019, CDF has evolved from a local investment and trust company to a full-fledged financial conglomerate with four business arms. With a new start in mainland China, President Wang is looking forward to seeing where CDF’s journey will lead us in the next 60 years.
As of end-September 2019, CDIB Capital Group’s AUM had exceeded NT$41.08bn, while the performance of biomedical-related investments in Greater China has been strong. President of CDIB Capital Group Mr. William Ho revealed that CDIB Yida Healthcare private equity fund will seek to establish a foothold in China’s enormous biomedical market by introducing cutting-edge technology from the US and abroad, capital market and talents from across the Greater China region, and global marketplace. The value creation from consolidation among biomedical players in the Greater China region will expedite cross-strait industry upgrade and create the best platform on which cross-strait industry resources converge. Through CDF’s network of allies across domestic industries, innovative brands, technologies and products will gain the channel support needed to be introduced to the global stage.
President Ho further points out that CDIB Yida Healthcare Private Equity Enterprise fund boasts in-depth collaboration with Jiangsu Govtor Capital Group and the backing of Addor Capital, a spin-off of Govtor Capital Group, thereby realizing the three objectives of introducing Taiwan’s advanced medical tech into the mainland market, facilitating enterprise upgrade and transitioning efforts for medical service and pharmaceutical firms in mainland China, and bringing innovations by Chinese and Taiwanese corporations into the global market.
Looking into the status quo and outlook of the biomedical industry, Chairman of CDIB Capital Healthcare Ventures Mr. James Ho has identified the niche areas for the CDIB Yida Healthcare private equity fund. He first highlights that in 2018, biomedical sector in mainland China, sized at over Rmb 350bn, saw a record-breaking nine new Class I drugs obtain approvals. Meanwhile, China trailed only the US in terms of the numbers of patent applications filed in the life science and biotech domains. By 2020, China is set to become the world’s second largest biomedical market, behind only the US. Through the collaborative efforts between CDF and Govtor Capital, the setup of CDIB Yida Healthcare private equity fund will advance the cross-strait exchange, industrial upgrade and market exploration of the greater healthcare ecosystems in Taiwan and mainland China.
The CDIB Yida Healthcare Private Equity Enterprise fund can be best described as a facilitator of cross-strait biomedical resource integration. Addressing the launch event, Kunshan City Deputy Mayor Song also expressed optimism in the joint efforts of CDF, Govtor and Addor Capital in the founding of CDIB Yida Healthcare Private Equity Enterprise fund, which aspires to converge strengths from all sides to elevate Kunshan’s standing in innovative investment in the biomedical field. He also looks forward to the efforts spearheading new development for Kunshan.