SINGAPORE – Singapore-based The Sylvan Group, which is backed by members of the Hyundai and Rockefeller families, announced that it has purchased majority stakes in four Singapore healthcare and pharmaceutical companies for US$140.5 million, Reuters reports.
Kyungsun Chung, co-founder and managing partner of influence investor Sylvan, stated in a press release that the investments were made from its Sylvan Asia Growth Fund I, which has already raised roughly half of its targeted US$400 million from buyers.
Chung, the grandson of Hyundai Group’s founding father, told Reuters that the fund’s goal is to raise the remaining US$200 million by the second half of 2023.
In addition to monetary returns, impact investments have a positive, measurable social and environmental impact.
The Singapore-based company is investing in the pharmaceutical companies Juniper Biologics, which develops oncology drugs, and Juniper Therapeutics, which specializes in osteoarthritis treatment.
The other two acquisitions include orthopedic specialist Artemis Health Ventures and radiology firm DX Imaging.
Chung, 35, stated that the fund’s focus areas include healthcare, renewable energy, and education – all of which have been targeted by cash-rich private-equity firms.
We are investing into mid-size companies that either have strong potential social impact through their businesses or could improve much more by changing their value chains or have solutions for social and environmental problems.”
In order to attract investors, Sylvan is targeting a 25% internal rate of return for its investments. “Without achieving meaningful returns, I don’t think we will be able to increase the size of impact investing at all,” Chung says.
Sylvan has obtained backing from the likes of Singapore’s United Overseas Bank, Korea’s Hanwha Life Insurance and Kolon Industries.
Sylvan has received backing from members of Chung’s family, who are among South Korea’s wealthiest, as well as Singapore billionaire Wee Cho Yaw’s United Overseas Bank, Hanwha Life Insurance, and Kolon Industries.
“One of the reasons a lot of family-controlled conglomerates in Asia are working with us is because they also see the importance of adapting to this new changing environment, which is basically all about sustainability,” Chung stated.
Sylvan, which was founded in 2019, follows a strategy of acquiring majority stakes in mid-size, profitable companies and executing leveraged buyouts.
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