Growing with Asia: A journey of resilience and opportunity

Navigating macroeconomic shifts

Asia’s economic landscape has presented both challenges and opportunities over the past year. India experienced an election-driven surge in market activity, resulting in high valuations, while China grappled with slower industrial production and shifting regulatory policies. Meanwhile, Southeast Asia’s steady economic growth and rising affluence have created a fertile ground for healthcare and technology investments.

“We have taken a nuanced approach to investing in Asia,” says Amit. “In India, our focus has been on disciplined valuations and high-quality opportunities in leading healthcare assets such as Manipal and Medi Assist. In China, we have adopted a more cautious stance, prioritising investments in companies with strong domestic fundamentals. As part of our ‘In China for China’ strategy, we are investing in capabilities that cater to local demand, ensuring our portfolio aligns with the country’s evolving healthcare landscape. And in Southeast Asia, we see immense potential to increase our activity across direct investments and partnerships.”

This strategic adaptability has allowed Novo Holdings to remain resilient amid economic fluctuations, ensuring a balanced portfolio across the diverse Asian markets.

Investing in high-impact sectors

Novo Holdings’ investment strategy in Asia is centered on high-impact sectors that drive both financial returns and meaningful societal contributions. One of the standout investments in 2024 was Manipal Hospitals, marking the firm’s largest commitment in the region to date. Manipal Hospitals is one of India’s leading healthcare providers, known for its extensive network of private multi-specialty hospitals, advanced medical technology, and commitment to high-quality, accessible care.

“Our investment in Manipal underscores our commitment to scaling access to quality healthcare in emerging markets,” Amit explains. “Similarly, our pre-IPO investment in Medi Assist is transforming the health insurance landscape in India, delivering strong returns through strategic mergers and expanding premiums.”

Beyond healthcare, Novo Holdings has demonstrated its commitment to planetary health in Asia with its investment in AgNext, an Agritech leader utilising AI to enhance food quality and safety testing.

“AgNext exemplifies how cutting-edge technology can address pressing sustainability challenges in Asia, such as food security and agricultural efficiency,” Amit adds. “These investments reflect our commitment to supporting companies at the forefront of societal and environmental transitions.”

Building a strong regional presence

Recognising that talent is the foundation of long-term success, Novo Holdings has steadily expanded its Asia team, bringing in local investment and business support experts in Singapore and Shanghai. Additionally, its growing internship programme, launched in 2021, has provided tertiary students with valuable hands-on experience in the investment industry.

“Our internship programme is not just about fostering young talent; it’s about building a robust talent pipeline for the future,” says Amit. “We want to equip the next generation of investment professionals with the skills and insights needed to navigate the complexities of this industry.”

In a move reflecting its commitment to facilitate greater collaboration, colleagues in China relocated to a larger, modern office in the heart of Shanghai in August 2024. The Singapore office has also been expanded to facilitate future growth opportunities.

Harnessing AI and Technological Innovation

Artificial intelligence (AI) is playing a transformative role in the healthcare and planetary health sectors, and Novo Holdings is actively investing in companies at the forefront of this revolution. For example, portfolio company Qure.ai is leveraging AI to enhance medical imaging and diagnostics, making early detection of cardiometabolic diseases more accurate and cost-effective.

“AI is revolutionising the way we approach healthcare, improving patient outcomes while reducing inefficiencies,” Amit states. “We are equally excited about AI’s potential in sustainable agriculture, optimising supply chains, and reducing food waste.”

Seizing Asia’s Growth Potential

With 60% of the world’s population and a significant share of global GDP, Asia remains a central pillar in Novo Holdings’ global investment strategy. Southeast Asia, in particular, is gaining prominence due to its young populations and thriving innovation ecosystem.

“Our flexible and scalable investment approach allows us to capitalise on Asia’s unique opportunities,” Amit remarks. “By actively engaging with local companies and leveraging our global network, we aim to be a trusted partner in driving transformative solutions.”

Looking to the Future

As Novo Holdings continues to expand its footprint in Asia, the establishment of a new office in India will further cement its presence in this key market. It is also enhancing its asset management capabilities, focusing on value creation through cross-company synergies and operational efficiencies.

“Talent development remains a top priority for us,” Amit emphasises. “By providing advanced training and exposure to board-level responsibilities, we are preparing our mid-to-senior level executives to take on greater leadership roles.”

Additionally, the planetary health platform will see tighter integration across the Asia portfolio, aligning with Novo Holdings’ broader mission of investing for the benefit of people and the planet.

“As we move forward, we remain vigilant in monitoring macroeconomic trends while staying committed to prudent valuation and risk management,” Amit concludes. “Our goal is to continue building a diversified portfolio that delivers both financial returns and societal impact.”

Novo Holdings’ journey in Asia reflects a strategy grounded in adaptability, innovation, and long-term purpose. By embracing the region’s dynamic potential and fostering top talent, the firm is well-positioned to drive sustainable growth in the years ahead.