Legend hits first close on healthcare fund, launches TMT vehicle
Legend Capital has reached a first close of $177 million on its third US dollar-denominated China healthcare fund. It is one of five vehicles the GP has in the market, including its recently launched ninth flagship technology, media, and telecom (TMT) fund.
The full target for the healthcare fund is $300 million, according to two sources close to the situation. The VC firm declined to comment on fundraising.
Legend started investing in healthcare in 2007 through its fourth flagship fund and ramped up exposure over successive vintages before separating the TMT and healthcare strategies. A debut healthcare vehicle of $250 million was raised in 2015. A successor closed on $230 million in 2019.
Earlier this year, the firm spun out healthcare assets from its fifth and sixth venture funds – the last two raised prior to the separation – into a continuation vehicle supported by Hamilton Lane and Coller Capital. The $270 million deal included capital for follow-on investments.
Legend now has separate CIOs for healthcare, TMT, and renminbi-denominated growth investment under Richard Li, who has been promoted from CIO to CEO and president. Jafar Wang heads up healthcare, with Raymond Chen and Hank Zhou leading TMT and renminbi growth, respectively.
The firm’s ninth TMT fund was launched in the past fortnight with a target of $400-500 million, the sources added. Legend raised $515 million for its fifth fund in 2011 and has remained around that level in each subsequent vintage, closing Fund VIII at the hard cap of $500 million in October 2020.
Another secondary transaction was completed in 2020 for Fund IV, which was nearing the end of its life. Hamilton Lane led a $200 million restructuring, which saw 12 assets transferred into a new vehicle with a five-year lifespan, thereby extending the holding period.
The three additional strategies in fundraising mode are all on the renminbi side. A third healthcare vehicle is expected to close by year-end with commitments of RMB2.8-3 billion ($438-470 million), one source added. Legend is also seeking RMB3 billion for a TMT fund and RMB9 for a growth fund.
The local currency vehicles are managed by the same three teams responsible for the US dollar equivalents. Another team handles a joint venture semiconductor fund with Korea’s SK Holdings.
Legend was established in 2001, with Legend Holdings providing the entire $35 million corpus for Fund I. The firm is now an independent subsidiary under Legend Holdings. It has raised capital from third-party sources since Fund II, though the parent remains an LP.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.