CBC Group, Asia's largest healthcare-focused asset manager, said it would expand investment and collaboration in Korea's healthcare market. It assessed that while Korean bio and medtech corporations have strong technology, they need capital and networks to move into global clinical trials and commercialization.
CBC Group held a press briefing on the 10th at the Four Seasons Hotel in Jongno-gu, Seoul, to explain the group's growth and its Korea market strategy. Attending were Michael Keyoung (Keyoung Han-soo), CBC Group's North America head and head of global private credit and royalties, and Billy Cho (Cho Ki-chul), CBC Group senior MD and head of joint value creation (JVC).
Founded in 2014 and headquartered in Singapore, CBC Group is a healthcare-focused asset manager. It specializes in investments in pharmaceuticals and biotech, medical technology, and healthcare services. Its current AUM is $10.8 billion (about 16 trillion won). In May, it agreed to a business combination with GHO Capital, a Europe-based healthcare-focused investment firm. The combined entity will launch as the world's largest healthcare-focused investment manager with total AUM of $21.0 billion (about 32 trillion won). The transaction is expected to close early next year.
CBC Group plans to use this business combination to strengthen its role in supporting the global expansion of Korean corporations. Keyoung said, "Korea is the most important market within CBC Group after China," adding, "Our goal is to help Korean corporations grow into global companies."
One of CBC Group's flagship Korea investments has been Hugel. In 2021, CBC Group formed a consortium to acquire Hugel. Since then, it has supported Hugel's overseas expansion and global business growth. Keyoung said, "Hugel is one of the most important portfolios for CBC Group," adding, "We are supporting it so it does not remain a Korean company but can grow into a global company."
Cho Ki-chul cited technological prowess as a strength of Korean healthcare corporations. Cho previously served as head of the Asia healthcare investment banking institutional sector at Citigroup and later worked as chief financial officer (CFO) at Chinese biotech corporation Zai Lab, where Cho led the Nasdaq listing and subsequent capital raises.
Cho said, "At Citigroup, while looking at Korean corporations such as Samsung Biologics and Celltrion, I thought Korea's technological capability was remarkable," adding, "Korean corporations have strong scientific foundations and a global perspective." Cho added, "However, moving into the global market requires a lot of time and capital."
Regarding Korea's biotech market, Cho assessed that "for biotech, an IPO is not the end but the beginning." Venture capital (VC) can support corporations up to the initial public offering (IPO) stage, but much more capital and networks are needed to reach global clinical trials and commercialization.
Cho emphasized, "No matter how good the technology is, it is hard to achieve results if you cannot connect the commercialization path, capital, and the portfolio demand of global pharmaceutical companies," adding, "CBC has a platform that can link scientific expertise, capital, and global networks."
CBC Group is also reviewing ways to advance Korean corporations' drug candidates or intellectual property (IP) to the stage of global clinical trials. As many Korean biotech corporations choose to out-license technology early due to funding shortages, the aim is to move development further to raise corporate value.
CBC Group has already built investment experience in Korea. According to CBC, beyond Hugel, it has worked with Korean corporations on matters such as a Celltrion Southeast Asia business-related transaction and joint development of candidates with ABL Bio. Cho said, "The Celltrion-related transaction was about $200 million (about 300 billion won), and Hugel was a larger investment," adding, "Including co-investors, total Korea-related investments so far are about $1.5 billion, or about 2 trillion won."
It is also strengthening its organization to target the Korean market. CBC Group has a Seoul office and is adding local staff. Cho said, "We already have staff in Korea and want to do much more going forward," adding, "If Korea goes well, we can expand into other markets such as Japan and Australia." Cho said, "Like K-pop and K-beauty, Korea's healthcare should also go global."
With the combination with GHO Capital, CBC Group aims to establish itself as a partner for the global expansion of Korean healthcare corporations. Keyoung said, "Domestic corporations may join hands with other funds, but CBC can grow Korean companies based on global capital and healthcare expertise," adding, "We hope CBC will be recognized as that kind of partner in the Korean market."