Healthcare Management Partners Inc., a venture between Mitsubishi Corp. and Development Bank of Japan Inc., may plan a second fund on expectations that demand for medical services will rise in the world's most rapidly aging nation.
The joint venture may start the new health care fund once the investing period for its first fund is over in March, said Hiroshi Murayama, chief executive officer of the Tokyo-based firm. It may invest in properties, mezzanine (a hybrid of debt and equity financing) and distressed debt of hospitals in Japan, he said, declining to elaborate because details have yet to be determined.
The venture aims to profit in a market where spending on medical and nursing care is estimated to increase about 70 percent by 2025, according to government data. The fund provides financing for hospitals struggling to raise capital to rebuild facilities and replace old equipment, Murayama said.