Asian investors double down on surgical robotics and brain-computer interfaces

Private investors in Asia are ramping up exposure to surgical robotics and brain-computer interfaces, riding a wave of healthcare dealmaking that nearly doubled the number of regional private equity funds active in the first half of this year.

Family offices operating in Hong Kong and across the broader region are reshaping portfolios to capture growth in advanced medical technologies, with the deal surge unfolding against the backdrop of China's expanding biotechnology sector.

PE funds double down on medtech

The number of healthcare private equity funds involved in Asia-Pacific deals climbed to 129 in the first half of the year, up from 66 in the same period a year earlier, according to Bain & Company data released last week. Globally, the sector logged 184 buyout deals over the same period, though total disclosed deal value fell 18 per cent year on year to US$51 billion.

William Chow, deputy group CEO of Raffles Family Office, which is headquartered in Hong Kong and Singapore and manages about US$2 billion in assets, said surgical robotics and brain-computer interfaces were coming up far more often than they did a couple of years ago. "Asia is ageing, so there's a structural, long-term demand for better surgery and medicine," Chow said. "A lot of the innovation is happening right here in Asia".

AI moves from lab to operating theatre

The investor interest reflects a broader shift in artificial intelligence adoption within healthcare, which is moving from drug discovery into clinical use to enhance surgery workflows in hospitals. In a panel discussion, Hu said that could include placing sensors in surgical tools to deliver real-time feedback to surgeons about the status of disease, enabling them to pivot or make different decisions during procedures.

The structural tailwinds from an ageing population and the concentration of innovation in the region are positioning Asia as a focal point for long-term biotech growth, according to private investors.

Source: South China Morning Post