KIC Private Fund Marks Its Tenth Year Investing in Healthcare
KICVentures announced its tenth year of healthcare investment. Since its conception, it has invested around $190 million into medical devices, healthcare services, mobile and information technology and medical real estate. Twenty-five million dollars was raised from institutions and high net worth individuals who showed confidence in its management team and track record. The fund’s strategy is to have controlling ownership and take long-term positions.
Dr. Kingsley R. Chin leads the management team, and is uniquely qualified in the healthcare space. Holding four Harvard University and two Columbia University diplomas, he is a successful entrepreneur, and has experience on the frontline of healthcare services and technology investments as a board-certified orthopedic and spine surgeon in academia and private practice. In 1996, Dr. Chin, while a medical student at Harvard, invested $2,000 of his savings and borrowed $3,000 from his family and $5,000 from friends to close on his first residential investment property in Cambridge, Massachusetts. He renovated the property and sold it in six months for a $100,000 profit yielding a 50x return. He reinvested into a string of properties, growing his real estate holdings to about $5 million within six years, representing a 2,500x return.
In 2000, he diversified into healthcare investments to leverage his medical background and experience working in management information systems at Andersen (Accenture) Consulting in New York City, where he spent over a year at Cigna Insurance and 6 months at Goldman Sachs. He began to file patents for medical devices and founded Meduweb.com, an Internet distant learning company platform with Massachusetts Institute of Technology (MIT) Java software he acquired using cash and stock.
In 2005, Dr. Chin incorporated Kingsley Investment Company (KIC). Under KIC, he developed the MANTIS screw technology for minimally invasive fusion spine surgery and sold the prototype and intellectual property to Stryker, yielding a 100x return.
Flushed with cash in 2006, the fund founded SpineFrontier, Inc to enter the $10 billion spine market by developing disruptive less invasive technologies for outpatient spine surgery based on Dr Chin’s Less Exposure Surgery (LES) Philosophy. KIC raised over $6 million in capital from high net worth individuals and provided up to 300% returns through a share buy-back in less than five years. SpineFrontier has double-digit annual revenue growth and profitability for over 5 years.
In 2007, KIC established a philanthropic arm under the LES Society to help surgeons organize and be empowered. The LES Society uses entrepreneurship as a platform to enhance patient care by bringing together surgeons, patients, students, researchers and advocates for an affordable and better quality, global healthcare system that will provide outpatient care that has less risk, less morbidity, and produces the highest outcome and rapid recovery.
In 2003, while an Assistant Professor and Chief of Spine Surgery at The University of Pennsylvania, Dr. Chin met Aditya Humad, then a student at Wharton. Before joining KIC as a cofounder, Mr. Humad worked on Wall Street as an investment banker with JPMorgan, gaining experience in M&A, capital raising, and financial restructuring. His key transactions included the $442 million sale of Lev Pharmaceuticals, the $163 million acquisition of Apptec and the $115 million asset sale for Nektar Therapeutics.
In 2008, the fund invested in the LESS Institute, a vertically integrated one-stop outpatient spine and orthopedic surgery service provider that will compete with hospitals and be a point of service for the fund’s other companies. The LESS Institute has double-digit annual revenue growth and profitability.
In 2014, the fund acquired SmartHUD and merged it into SenseDriver Technologies to develop a leading head up display (HUD) hardware, and a voice-activated mobile software app platform for accident avoidance while driving and staying connected on your phone. The fund acquired AxioMed Spine Corporation in 2014 after twelve venture capitalists and banks invested over $80 million. AxioMed, LLC focuses on proprietary disc and facet replacement technologies to restore normal motion in the spine, over fusion which eliminates spinal motion. The fund also invested in digital healthcare IT with LESS Institute Online, a mobile technology platform for on-demand diagnostic, treatment, and patient-doctor connections.
The fund expanded into commercial properties in 2014, with the purchase of a 70,000 square foot, waterfront medical office building in South Florida. This will serve as a prototype for LESS Institute’s outpatient global vision.
The KIC private fund sees within its portfolio key companies poised for explosive growth and high returns. “We understand now is the time to transform our portfolio to accelerate growth and our investor value. The next decade will be exciting for our management team, as we are emboldened to build on all our experiences and successes,” said Dr. Chin and Mr. Humad.
*This release is for general informational purposes only and is not to provide appropriateness or suitability of any investment, or constitute an offer to sell or solicitation of an offer to buy any security or investment.