Shenzhen Capital seeks $290m for China healthcare fund
Shenzhen Capital Group is looking to raise upwards of RMB2 billion ($290 million) for its first healthcare fund as the Chinese venture capital firm continues efforts to diversify its product offering.
The fund has achieved a first close of RMB800 million with contributions from the Shenzhen government guidance fund, Ping An Industrial Investment, BeFor Capital, Suining Investment, China Industrial Bank and industrial conglomerate Kunpeng Group. Shenzhen Capital is also an LP.
The team tasked with deploying the Hongtu Medical Fund is led by Yi Zhou, who holds a doctorate in medicinal chemistry from Peking University. He joined Shenzhen Capital in 2012 and has made healthcare investments amounting to more than RMB1 billion. Previous portfolio companies include genetics specialist BGI Group, equipment manufacturer Mindray Medical, and biotech player Zh-Bio.
The fund launch comes after six months after Shenzhen Capital reached a first close of RMB1.8 billion on its first M&A fund, which has an overall target of RMB3.6 billion. The vehicle – which is also part of the Hongtu fund family – is intended to help the firm better address the financial needs of innovative companies and expand its investment scope.
Shenzhen Capital was established by the Shenzhen government in 1999 and currently has more than RMB290 billion in assets under management. It primarily invests in small and medium-sized enterprises (SMEs), businesses in high-tech and emerging industries, and start-ups. As of June 2019, the firm had committed RMB44.7 billion to 1011 projects and companies, of which 145 have gone public.
It manages a wide range of investment vehicles, including commercial funds, joint venture funds, mutual funds, and government guidance funds. Total assets under management are about RMB345 billion.
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