Long Hill closes second China VC fund at $265m
China-focused Long Hill Capital has reached a final close of $265 million on its second US dollar-denominated VC fund as well as a first close of about $30 million for its first renminbi vehicle.
LPs in Fund II were predominantly investors from Long Hill's first vehicle, which closed in 2016 at $125 million, including New Enterprise Associates (NEA) and Asia Alternatives. Investors in the renminbi vehicle include government-led fund-of-funds, family offices, and other private capital investors.
Fund II was launched in March with a view to raising $200 million and exceeded the target last month in part due to strong demand from new backers including San Francisco Employees Retirement System (SFERS) and other pension funds.
"We are impressed with Long Hill's deep sector expertise and industry network, as well as the quality of their portfolio companies," Art Wang, managing director of private investments at SFERS, said in a statement.
The fund will follow a similar strategy to its predecessor, focusing on technology-enabled consumer and healthcare verticals within China and leveraging NEA's connections in related industries. Long Hill spun out of NEA in 2016 and now claims total assets under management of about RMB3 billion.
The new renminbi fund, which was launched in April, has the same mandate as its US dollar counterparts and will be managed by the same team. AVCJ understands that although a hard cap has not yet been set, the vehicle is expected to achieve a significantly smaller final corpus that will equate to up to about $70 million.
More than 80% of Fund I investments were at the Series A stage and the companies are said to have gone on to raise some $300 million in follow-on funding collectively. Three existing portfolio companies – Hygeia Medical Services, GST Clinics and LinkDoc Technology – are said to have valuations in excess of $700 million.
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