China's Quan Capital raises $275m for second healthcare fund

The vehicle had a target of $250 million, according to industry sources. Its mandate is to incubate and develop next-generation life sciences companies globally as well as in China. There are three main areas of interest: biotech drug development; enabling technologies and high-end specialty services that drive innovation in healthcare; and companion diagnostics and precision medicine.

The firm’s founding managing director is Samantha Du, who is best known for Zai Lab, an early mover among Chinese biotech start-ups in the licensing pre-clinical findings from Western countries and developing drugs in China. The company raised $164.5 million across three private funding rounds over the course of three years before listing on NASDAQ in 2017.

Du began her career in pharma with Pfizer in the US, eventually rising to global leader for metabolic drug licensing. This was followed by a decade with Hutchison China MediTech, a subsidiary of Li Ka-Shing’s Hutchison Whampoa, building up a pipeline of oncology and auto-immune treatments. Du then spent two years with Sequoia Capital China, leading healthcare investments.

Her fellow managing directors at Quan are Marietta Wu, formerly COO of Zai Lab, and Stella Xu, who previously held numerous senior roles at Roche. 

Quan raised $150 million for its debut fund in 2017, which has made about a dozen investments across China, the US and Europe. The Chinese companies include laboratory services provider Medx Translational Medicine, drug developer Kira Pharmaceuticals, medical devices manufacturer Zidan Medical, and digital healthcare platform iCarbonX.

There have also been two exits from Fund I: US-based immuno-oncology specialist Armo Biosciences and Chinese contract research organization DMed. The former was acquired by Eli Lilly for $1.6 billion.

AVCJ Research has records of approximately 30 final closes by China healthcare funds since 2011. Nearly half have come within the last three years. In 2019 alone, C-Bridge Capital has raised $850 million for a fund that will deployed across Asia but mostly in China; Lilly Asia Ventures accumulated $750 million for a global vehicle that primarily backs companies with a China angle; and KPCB alumnus James Huang closed his debut early-stage fund under Panacea at $180 million

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• Topics
• Greater China
• Venture
• Fundraising
• Healthcare
• GPs
• China
• Quan Capital