Singapore's New Silkroutes Group has formed a joint venture with three parties, including the Singapore subsidiary of China’s Nanshan Group, to develop private equity funds that will focus on healthcare and infrastructure in the Asia Pacific region, including Japan and Australia.
The new Singapore-incorporated entity, New Silkroutes Asset Management, is 30% owned by a unit of New Silkroutes Group, 30% by Nanshan Group Singapore, and 30% by former United Overseas Bank executive Terence Ong Sea Eng, who will lead the joint venture.
Fuji Capital Pte Ltd. owns the remaining 10%, according to an announcement. No financial details on how much the fund seeks to raise were disclosed.
New Silkroutes Asset Management, which is currently applying for the Capital Markets Services license from the Monetary Authority of Singapore, will initially focus on the healthcare sector in the region.
The number of people in the middle class in Asia Pacific is expected to rise to 3.2 billion by 2030 from 525 million in 2009, according to the Organization for Economic Cooperation and Development. This increase, together with growing affluence, is expected to drive demand for better quality medical treatment and care.
"With this collaboration, I am confident we can offer investors an attractive alternative to generate a consistent stream of income," said Ong in a statement. "We will be able to source promising healthcare services companies in Asia Pacific and add value to the companies we invest in."
China's Nanshan Group is a privately-held company started with an aluminum business, which subsequently listed in Shanghai, and evolved into a conglomerate with interests in textile, finance, healthcare, real estate, tourism, education and aviation.
Within the healthcare space, Nanshan Group has invested in and built hospitals, nursing homes and related facilities in China. In Singapore, its main focus is real estate development and aluminum trading.
It also acquired several industrial buildings and hotels and launched its maiden condominium project in Singapore in recent years.
Healthcare is an area New Silkroutes Group recently said it would expand into. The group announced last month it would acquire a 51% stake in Singapore-based Healthsciences International Pte Ltd for S$2.17 million.