The Carlyle Group LP

01/26/2021 | Press release | Distributed by Public on 01/25/2021 23:46

Carlyle-backed Adicon Closes US$88 Million Funding Round

Investment to further expand the company's diagnostic testing business

Hangzhou, China - Adicon Holdings Limited and its controlled entities ('Adicon'), a leading third-party independent clinical laboratory company in China,together with The Carlyle Group (NASDAQ: CG) today announced the final closing of a US$88 million funding round of preferred shares for Adicon. This oversubscribed funding round, which had its first close in December 2020, was led by Malaysia's sovereign wealth fund Khazanah Nasional Berhad and joined by Lake Bleu Capital, Cenova Capital, OrbiMed, Mirae Asset, among others. Carlyle will remain the single largest shareholder in Adicon following this round.

Established in 2004, Adicon operates 24 fully-owned diagnostic laboratories in China, offering diagnostic testing outsourcing services to more than 10,000 active customers, including hospitals, clinics and contract research organizations (CROs) in 28 provinces. As a pioneer in the fast-growing independent clinical laboratory (ICL) industry, Adicon has developed a scalable operation with a comprehensive test portfolio including a wide range of esoteric tests that address diverse customer demands.

Carlyle invested in Adicon and became its single largest shareholder in 2018 with equity coming from Carlyle's fifth Asia buyout fund, Carlyle Asia Partners V. With Carlyle's support, Adicon has institutionalized its business and strengthened its management team, invested significantly in laboratory infrastructure and diagnostic testing equipment, further expanded its network of diagnostic laboratories in China, and established stronger collaboration with hospitals and healthcare providers to further grow the company's customer base.

China's diagnosis testing market is expected to experience significant growth in the coming years driven by an aging population and an increasing awareness of proper flu and disease diagnosis in the wake of COVID-19. At the same time, third-party laboratory testing penetration remains low in China compared with developed countries. Proceeds from this funding round will be used to invest in new opportunities in advanced and esoteric testing and to fund the company's further expansion.

Last week, Adicon also announced that Xu Ke has been appointed as CEO, effective January 20, 2021. Xu joins from Meinian Onehealth where he was CEO.

Ling Yang, Managing Director of the Carlyle Asia advisory team and Chair of Adicon's Board of Directors, said: 'This successful funding round is a testament to Adicon's significant progress as a leading independent clinical laboratory platform in China. Carlyle is a long-term investor, and we are committed to continue working with the management team and Mr. Xu Ke, the newly appointed CEO, to further expand the company's diagnostic testing capabilities and services. We welcome Khazanah and other new investors, and thank them for their support.'

Carlyle has been investing in China for over two decades, with a well-established history of investing in the healthcare sector. Globally, Carlyle has invested more than US$13 billion of equity in approximately 80 deals in the healthcare sector as of September 30, 2020, with China investments including oncology focused biotech company Abbisko,leading biopharmaceutical company Salubris, the global peptide APIs manufacturer Ambio, hi-tech medical device pioneer MicroPort, the leading medical group Zhongmei Healthcare, China's leading healthcare provider Meinian Onehealth, among others.

About Adicon
Adicon Holdings Limited and its controlled entities ('Adicon') is a leading independent clinical laboratory company headquartered in Hangzhou. Adicon provides comprehensive and high-quality diagnostic testing services to hospitals and health screening centres, as well as central laboratory services to biopharma clients and contract research organizations through an integrated network of 24 self-established laboratories across China. Further information is available at

About Carlyle
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Investment Solutions. With $230 billion of assets under management as of September 30, 2020, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,800 people in 30 offices across six continents. Further information is available at Follow Carlyle on Twitter @OneCarlyle.

About Khazanah Nasional Berhad
Khazanah Nasional Berhad ('Khazanah') is the sovereign wealth fund of Malaysia entrusted with growing the nation's long-term wealth via distinct commercial and strategic objectives. Khazanah's commercial objective is to grow financial assets and diversify revenue sources for the nation, while its strategic objective is to hold strategic assets that bring long-term economic benefits. Khazanah is guided by its investment philosophy which emphasises attaining appropriate risk-adjusted financial returns, generating sustainable returns, and integrating ethical and responsible investing considerations. For more information on Khazanah, please visit

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Tammy Li
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Sheena Shah
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Khazanah Nasional Berhad
Mohd Raslan Md Sharif
Phone: +603 2034 0000
E-mail: [email protected]