Frontline BioVentures merges with WuXi Ventures
Chinese healthcare specialists Frontline BioVentures and WuXi Healthcare Ventures have merged, forming a new investment firm called 6 Dimensions Capital.
The combined entity is said to be one of the largest healthcare-focused VC firms covering China and the US, with total assets under management (AUM) of RMB5.5 billion ($800 million). Following the merger, 6 Dimensions Capital plans to raise new renminbi-denominated and US dollar funds.
Ge Li, the founder of WuXi AppTec (also known as WuXi Pharmatech), the parent company of WuXi Ventures, will become 6 Dimensions Capital’s chairman, while Leon Chen, founder and managing partner of Frontline, becomes CEO. The investment team will comprise 24 professionals, including seven partners and seven venture partners.
Chen, formerly a partner at Eight Roads, founded Frontline in 2012. The GP manages two renminbi funds and one US dollar fund, with a combined AUM of RMB3 billion. AVCJ Research's records show that the firm closed its debut renminbi fund at RMB700 million in 2012, and its successor vehicle closed at RMB1.1 billion last year. The firm has invested in about 20 life science companies in China.
WuXi Ventures was formed in 2011 as a spin-off from WuXi AppTec’s corporate venture department. At present, it manages about $350 million across two US dollar funds - with its second healthcare-focused vehicle closing at $290 million in 2015. The VC firm has invested in 40 companies based in China and the US, including Hua Medicine, BeiGene, and CStone Pharmaceuticals.
“The teams are highly complementary to each other. Frontline has a more established venture investment exposure in China and WuXi Ventures has a clear advantage with its access to innovative startups in the US. The benefit of a combined force motivated top management to come together,” two companies said in a joint statement.
WuXi AppTec provides contract R&D services to the global pharmaceutical sector. It completed a management-led privatization in late 2015, supported by PE investors including Ally Bridge and Hillhouse Capital, as well as Temasek Holdings and Yunfeng Capital.
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