The first SPAC that clearly pursues the goals of the life and health industry in Asia was born.

On June 9, Summit Health, a SPAC company initiated by Fu Wei, CEO of Kangqiao Capital, a well-known domestic PE institution, officially landed on the NASDAQ using “SMIHU” as the stock code, and began a merger and acquisition journey for health industry projects.

The US SPAC market has experienced major ups and downs this year. A new high was reached in the first quarter, with 296 SPACs successfully issued (totaling 95 billion US dollars), which is 20% higher than the volume issued in full 2020. However, starting in April, with the overall turmoil in US stocks, the tightening of regulations, and the adjustment of corresponding accounting policies, the SPAC market suddenly became cold. Only more than 10 orders were issued in April and May, respectively. Currently, a total of nearly 300 SPACs are still being applied for or awaiting subscription. Investors are becoming more rational and cautious, and are continuously improving SPAC screening standards.

The investment community has exclusively learned that Summit Healthcare is the first SPAC focusing on the healthcare sector in Asia. The entire public offering took only about a month. During this period, it received great attention from international first-tier institutional investors and vigorously subscribed against the market. Among them, Asia's famous Xuehu Capital and Prin Capital became the cornerstone investors of Summit Healthcare SPAC in the early stages of the offering. According to relevant platform information, there is a strong lineup of institutional investors participating in this IPO, including Perceptive, RTW, and Millennium.

This is just another powerful verification of Fu Wei's rare style of play in the health investment community --Since founding Kangqiao Capital in 2014, Fu Wei has taken the lead in setting up 10 companiesWith its “incubation+operation” investment strategy, it has created classic examples of sensational medical circles such as Tianjing Biology and Genting Xinyao.

Behind every case of extremely high returns, it is inseparable from the unique talent system built by Fu Wei of Kangqiao Capital. There is a full flow of talent in this international PE: in order to incubate enterprises oversupply the world's top talents, young people also have a brand-new career development path — they can become excellent investors or join incubated enterprises to become excellent entrepreneurs. This kind of ecological organization system is rare in VC/PE circles.

Another blockbuster SPAC went public,The head of PE after the 80s took the plunge

Summit Health's successful stock offering and successful IPO is undoubtedly another landmark event in Fu Wei's journey through the global healthcare investment industry. Over the years, Kangqiao Capital, which he is in charge of, has also left a strong imprint on the VC/PE industry.

This is a PE agency that has taken an unusual path. Since it was founded in 2014, Kangqiao Capital has chosen healthcare as an ultra-long-term track. The first phase of the fund invested in many star companies, including Cinda Biotech, using a minority equity investment model. Beginning in 2016, Fu Wei, the helmsman, decided to switch the front of the car after many considerations from the dimensions of entrepreneurs and investors --Start a company personally, work as an investor, and invest heavily in capital and resources as a co-founderto help entrepreneurs start a business from a higher starting point and grow with them.

At this point, Fu Wei has set a unique mission for Kangqiao Capital — to become the investor and entrepreneur with the most entrepreneurial experience in the health sector.

Roll up its sleeves and do it yourself, Kangqiao Capital found the source of value creation in one step. Now, this idea has been effectively verified by the market.daysJingbiao is Kangqiao Capital's first victory on the incubated investment path. However, in recent months, Aimee Biotech, and Nikang Therapeutics's large round of world-class investors have participated in financing, which is a sign of progress over and over again.

This style of play is rare in VC/PE circles. Fu Wei told the investment community, “WeThe experience of being deeply involved and in all of the above companies sets us apart from other investors. We have experienced the development process of the above companies in 360 degrees. When CEOs can't sleep, we can't sleep. Their challenges are our challenges; the hurdles they can't overcome are also our hurdles.It's a different experience. It's like being a corporate twin brother, winning 100 times at a time.”

Having taken a new approach, Kangqiao Capital has already reaped rich fruits. In January 2020, Tianjing Biotech entered the NASDAQ IPO bell stage. Today, its total market capitalization has exceeded 5.8 billion US dollars,Kangqiao Capital brought in more than 1 billion US dollars in revenue.9 months later,Genting Xinyao knocked on the door of the Hong Kong Stock Exchange. As a result, Fu Wei also welcomed the second listed pharmaceutical company that led the incubation, creating a super return of 10 billion dollars in one fell swoop. Even after listing, Kangqiao Capital remains the single largest shareholder of these companies, standing behind them and continuing to run with them.

However, this is just the tip of the iceberg of Kangqiao Capital's huge medical ecosystem.In the past 5 years, Kangqiao Capital has founded and operated a total of 10 platform-based medical companiesIt unscrupulously provides enterprises with all-round support, from talent to capital to resources, and accompanies entrepreneurs to experience everything from 0 to 1, from 10 to 100. This brotherly entrepreneurial process has also allowed Kangqiao Capital's team to develop at a rapid pace.

Continuously stepping into new test fields over the years, Kangqiao Capital has internalized the experience gained on this path into a set of accurate and efficient entrepreneurship secrets --Turn yourself into a machine learning platform to start a business, and don't allow the same technical mistakes to happen a second time.

“We have four or five entrepreneurial experiences every year. We have a deep understanding of what problems an enterprise may face at any stage, what resources need to be allocated, and where those difficult and right decisions are. Of course, there are also some experiences that are at the mental level, and they will become the main theme of our interaction with the CEO, and they will continue to evolve together.” Fu Wei said.

An investor as well as an entrepreneur, this young investor, who is in charge of a health care flagship of more than 4.5 billion US dollars, is creating the ideal pharmaceutical ecosystem layout step by step. There,”Businesses involving Kangqiao are not allowed to fail” is an indestructible main theme.

An all-round team of pioneers

In Fu Wei's ideal layout, “people” always come first.

In the past three years, one of the things he spent the most time on was hiring people. This was exactly the hardest part. Kangqiao Capital has 6 professional HR teams. “Because different platforms require all kinds of talents, a list of more than 30 candidates is placed on my desk every day. In such a competitive industry, recruiting people is the hardest thing, but it's also the most right thing.”

“In the recruitment process, we persevere, think carefully, and are not afraid of being rejected for outstanding talents; more importantly, we will continue to think about how to change Kangqiao's own system and culture to increase its appeal to talents. We are serious, honest, and responsible when it comes to attracting talent.” Referring to how Kangqiao Capital recruits people, Fu Weiru said.

Currently, Kangqiao Capital has a team of 80 people and as many as 30 operating partners. It has offices in Singapore, New York, Hong Kong, Shanghai and Beijing, and its portfolio network also includes Tokyo, San Diego and Boston.ThisIt is an investment and industry development team spread all over the world with deep reach of major medical R&D institutions. Now, this team of pioneers continues to grow, and every individual is growing rapidly.

A group of talents from Kangqiao Capital Fund itself has been given more opportunities and possibilitiesThey all have a chance to play their next game in person. Here, it is almost the norm for investors to end up and join incubated companies as executives. In July 2017, Genting Xinyao, a new drug research and development recruits led by License-in, was born.What is less known is that in the executive team of this pharmaceutical company, 3 are investors from Kangqiao CapitalThey have successfully transformed into entrepreneurs and entrepreneurs.

There are many more examples like this. Unlike the pyramid-like talent system of most VC/PE agencies on the market, Kangqiao Capital's development path intersects with the horizontal development of multiple products and the vertical development of in-depth operations, and everyone has more opportunities for development. “For young people who have joined the fund, they have an additional path of career development --You can choose to stay in the fund, or you can join the invested company that you have put your best effort into and become a member of the core team.”

“In Kangqiao, talents can choose to be at home or go to overseas offices; they can choose to invest in equity, make sandwich products, or participate in teams such as secondary markets. Our GP is also continuously starting businesses, enriching products and providing our team members with opportunities to perform horizontally. What we lack the most is a leader, a leader with an entrepreneurial spirit,We don't have a ceiling for promotion; the only ceiling is your own imagination.” Fu Wei said.

Some people are starting to worry that young people who have just entered the business will have to incubate businesses. Is that possible? Fu Wei is not convinced; he often encourages his team to learn from the Internet industry's entrepreneurial leaders. In his opinion,When people grow the fastest is when they stand in the spotlightWhat Kangqiao can provide is a myriad of different types of stage. As long as it is an excellent performance, the format is not limited.

For many young people, they don't have a chance to sit in a position they can decide and think about how to arrange and choose actors, which is why they grow slowly. ”Whereas in Kangqiao, everyone has a chance, and we appreciate people who raise their hands and ask to take the stage.”

Today, at Kangqiao Capital, an organizational system between entrepreneurs, scientists, investors, etc. has been perfectly outlined. This is undoubtedly another rare and valuable presence in the VC/PE community.

What is the core logic of finding people in Kangqiao

What kind of people are Kangqiao Capital looking for? The answer given by Fu Wei is that his recruitment doesn't depend on whether he has a medical background, overseas study background, or high level of education. The only thing he will consider isNew executives have the experience and resources Kangqiao executives don't have.

Obviously, Fu Wei is playing a filler game. Zhang Hong joined Kangqiao Capital two and a half years ago and is now the head of post-investment management and managing director. When Zhang Hong was first persuaded, Fu Wei favored Zhang Hong's unique combination of two dimensions of ability. Zhang Hong worked for KKR for 5 years. He was KKR's managing director and head of the Shanghai office. He also served as the Greater China Regional Head of KKR's post-investment management and Asia Pacific Co-Head. Fu Wei has mentioned more than once that if you want to understand the systems, processes, and decision order of large-scale funds such as Blackstone, KKR, and Carlyle, finding someone who has worked in them is more effective than reading their books and getting in touch with them.

Furthermore, Zhang Hong has also led KKR's healthcare investment activities. Prior to joining KKR, Zhang Hong was a senior global partner and head of Asian healthcare and operations at Roland Berger Strategy Consultants.More than 20 years of relevant experience in the medical industry, plus working experience with large-scale funds worldwideIt filled the gap in Kangqiao Capital's important experience and ability in these two directions.

Zhang Hong's addition is trueadd strength like a tiger. He accompanied him throughout the post-investment management path of Yourui Pharmaceutical. At first, Kangqiao had its own R&D and production enterprise, but it lacked an independent sales platform that placed existing R&D products. Faced with forming its own team or looking for an existing team, Kangqiao Capital stumbled upon a small team called Yourui Pharmaceutical.

Mark, CEO of Yourui Pharmaceutical, and his team met Kangqiao's requirements. Afterwards, Kangqiao began injecting large amounts of capital, leaving Mark, the “professional killer”, instantly having a lot of bullets. As a result, YouRui Pharmaceutical expanded from an initial sales team to three sales teams. Zhang Hong's main role in this is to help Yourui find more capital, let capital play its role effectively, and at the same time continue to inject capital to help the team find key talents. In just three years, YouRui expanded from a small company on a racetrack to a complete specialty pharmaceutical company with both sales capabilities and front-end R&D.

Find the right person and placeThis is Kangqiao's core logic for finding people, and it is also Kangqiao Investment's core logic for empowering enterprises. Kang Lan's addition was even more so.

Kang Lan was previously the chairman of Fosun Insurance, an executive director and senior vice president. Prior to that, she was the chief human resources officer of Fosun International and led and witnessed Fosun's important development from 200 people to 1,200 people. Her addition was the result of Zhang Hong and Fu Wei having earnest conversations with her for 3 hours.In Fu Wei's eyes, Kang Lan has a rich resume and is also a super HRKangqiao holds many companies. Kang Lan has experience in enterprise management, especially talent management, which is rare for investors.

As it turns out, Fu Wei once again found the right person. Kang Lan, who joined Kangqiao Capital six months ago, immediately began reviewing Kangqiao's previous experience and lessons and forming Kangqiao's own system. Kang Lan likened it to a toolbox. ”This toolbox can help with any project we incubateFor example, in terms of the financial system, if an incubator company needs, we have a set of things that can empower him right away. Of course, it also includes equity incentives, performance management, etc. for executives. You can use the things in this toolbox if you take them out.” This is very important for medical and health companies; founders can spend more time on scientific research and development.

This is just the first step. Kang Lan's second important responsibility is to help companies find people, build teams, and put people in the right place. She was very proud to mention,The CFO of most incubated companies was found with Kangqiao's helpShe will comprehensively consider the three factors, whether she has listing experience, whether she has an investment banking background, and whether she has a deep understanding of the industry.

Playing the iron still requires strength on her own. Another important consideration of Kang Lan is reflected in her changing the name of her management team after the investmentEmpower the Co-Creation Team JVC (Joint Value Creation). Currently, Kang Lan has formed a team of more than 20 people, including not only senior headhunters, HR personnel who have worked on performance management and incentive mechanisms, but also executives who have worked as CFO's in large companies, as well as professional talents with deep insight into the industry. She is more determined to establish a co-creation model between Kangqiao's own team and the invested companies. “I hope that the company that has been developing for 5 years can help another company that has just started, and that the company that has already gone public can provide experience for the company that is about to go public”, forming an ecosystem that draws on each other's strength and integrates resources to form a virtuous circle.

Zhang Hong and Kang Lan invariably think that Fu WeiThe importance attached to talentsIt's the biggest reason they joined. They saw that this was a team full of energy and love to throw around. In the team, there was no generation gap between the post-60s, post-70s, post-80s, and post-90s, and everyone had a common image — constant tossing, continuous innovation, and never being satisfied.