DCP, Qiming support China medical devices fund

The new firm – led by Serena Shao, formerly a healthcare research analyst at Credit Suisse – will invest in medical devices businesses in the cardiovascular and lung disease treatment space. It will draw on DCP and Qiming’s investment expertise and Venus’ industry resources to help companies accelerate product commercialization. Targets will operate globally or in China specifically.

Fund I has already achieved a first close of $43.9 million, with DCP, Qiming and Venus making contributions of $25 million, $10 million, and $8 million, respectively. Venus said in a filing that its overall commitment would be capped at $25 million or 20% of the fund corpus.

“We are highly confident about the long-term potential of medical devices industry in China and wish to nurture more pioneers in innovation like Venus Medtech through this new investment platform,” David Liu, executive chairman of DCP, said in a statement.

Venus specializes in transcatheter aortic valve replacement (TAVR), a minimally invasive heart procedure commonly used on patients who are thought likely to experience complications in open-heart surgery. Its VenusA-Valve was the first TAVR product approved and commercialized in China. The company’s product portfolio covers all four heart valves. Venus generated revenue of RMB233.3 million ($33.4 million) in 2019 and posted a net loss of RMB380.7 million.

Qiming participated in the company’s Series A round in 2013 and reupped in the first two tranches of its Series B in 2013 and 2015, respectively. The firm also featured in the second tranche of the Series D round in 2018. DCP invested in the first tranche earlier the same year.

Venus raised HK$2.59 billion ($334 million) in its Hong Kong IPO last December and currently trades at a 110% premium to its offering price. As of December 2019, Qiming held a 7.5% stake in the company while DCP had 4.13%. Other investors include Goldman Sachs, Sequoia Capital China, and Dinova Capital.

Qiming is backing Ascendum through its seventh China venture capital fund, which closed earlier this year at $1.1 billion. Healthcare is expected to account for half the fund, including the bulk of a 25% allocation for late-stage rounds for existing portfolio companies. The firm has $5.3 billion in assets under management across nine US dollar and five renminbi funds.

DCP was established by Liu and Julian Wolhardt, who previously held leadership positions with KKR in China. A debut fund closed at $2.5 billion last year, comprising a US dollar-denominated tranche of $2 billion plus a renminbi sidecar of $500 million. The PE firm focuses on sectors – including healthcare – that benefit from consumption upgrades and industry consolidation in China.

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• Topics
• Greater China
• Fundraising
• Venture
• Healthcare
• China
• DCP Capital Partners
• Qiming Venture Partners