Legend hits $156m first close on renminbi healthcare fund
Legend Capital has reached a first close of RMB1 billion ($156 million) on its second dedicated healthcare fund. A US dollar-denominated vehicle – also the VC firm’s second for the sector – is scheduled for launch in the third quarter.
The overall target for the renminbi fund is up to RMB2 billion, 21st Century Business Herald reported. Legend closed its first US dollar healthcare fund at $250 million in 2015 and then raised RMB1.69 billion for a sector-focused renminbi vehicle the following year.
The firm has been investing in the healthcare space for a decade, committing more than $700 million to over 70 companies, said Junfeng Wang, a managing director at Legend who leads coverage of the sector. Drug development, medical devices and diagnostic technologies, healthcare services, and IT and big data are the main areas of focus.
Legend secured two substantial liquidity events last year as genetic test developer Berry Genomics went public in Shenzhen through a reverse merger and contract R&D services provider WuXi Biologics completed a Hong Kong IPO. Wang noted that 5-6 portfolio companies are targeting the Hong Kong market following regulatory changes that allow listings by zero-revenue biotech players.
The venture capital firm has also seen several investees go on to raise substantial follow-on funding rounds. Most recently, biopharmaceutical developer Innovent Biologics closed a $150 million Series E round led by Capital Group Private Markets. This came after a $260 million Series E round last year.
Legend has more than RMB35 billion under management across US dollar and renminbi funds. As of 2017, it had invested in over 300 companies, of which 60 have gone public and around 50 have been exited through M&A transactions.
Last year, the firm closed its seventh US dollar venture capital fund at $448 million and raised RMB4.5 billion for its fourth flagship renminbi vehicle. The firm also launched its second culture and sports-focused fund. Plans for 2018 include starting the fundraising process for the next US dollar and renminbi venture vehicles, in addition to raising the two healthcare funds.
Legend is sponsored by Legend Holdings, which also has an early-stage investment arm called Legend Star. Last year, the unit raised RMB700 million and $20 million for its third US dollar and renminbi funds. This marked the first time Legend Star had targeted third-party investors.
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