China's HighLight hits first close on life sciences fund, targets $650m
HighLight Capital, a China-based life sciences investor, has completed a first close of USD 540m on its fourth US dollar-denominated fund. The overall target is USD 650m.
The fund launched in March and the first close came in July, with existing investors accounting for 85% of commitments, Steven Wang, the firm’s founder and CEO, told Mergermarket, AVCJ’s sister publication.
Wang said that HighLight is looking to bring in sovereign wealth funds, insurers, conglomerates, and family offices from Europe, Southeast Asia, and the Middle East as new investors.
Founded in 2014, the firm has USD 2.5bn in assets under management (AUM) across four US dollar funds and four renminbi vehicles. The total includes USD 400m in co-investment. The first three US dollar funds closed in 2014, 2017 and 2020, respectively, on USD 200m, USD 250m and USD 450m.
Distributions to paid-in (DPI) on Fund I exceed 2x, while Fund II is on more than 1x, Wang added.
New investments from Fund IV include a China-based contract development and manufacturing organisation (CDMO) and an Indonesian vaccine developer. Average cheque sizes are in the USD 20m-USD 25m range.
Around two-thirds of HighLight’s overall portfolio comprises disease treatment and diagnosis companies, while the remainder is taken up by nutrition, probiotics, baby care, cosmetics, and consumer wellness companies, said Wang. The firm plans to continue widening the scope of its coverage in the broader life sciences space, including non-healthcare deals.
HighLight has seen 24 portfolio companies go public and a further 15 have been exited by trade sale. The listed contingent includes pharmaceutical R&D outsourcing player WuXi Apptec, contract research organisation Pharmaron, vaping technology specialist Smoore International, and tea house chain operator Nayuki.
The firm has more than 55 employees across four offices in Hong Kong and mainland China.
Asante Capital is serving as placement agent for HighLight’s latest US dollar fund.
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