BVCF raises $200m for third China life sciences fund
BVCF, a China life sciences-focused PE firm, has reached a final close of $200 million on its third fund.
Investors in BVCF III include: Adveq, US-based Mayo Clinic Foundation, International Financial Corporation, Swiss investment fund Obviam, Novartis pharmaceutical company, Blackrock, Munich Private Equity Partners, Avanz Capital, W.K. Kellogg Foundation, Sweden's Investor AB, family offices Starling Group and Hanking FoF, Bio1, New Enterprise Associates, and Chinese fund-of-funds Magic Stone.
The vehicle, which launched in June 2011, is more than $100 million larger than its predecessor, which closed at $90 million in 2008. The firm raised $21 million for its debut China fund in 2005.
In June, IFC said it would commit up to $20 million for Fund III. It invested $4.65 million in BVCF's first vehicle and put $10 million into the second fund.
BVCF III will invest in early- and growth-stage companies in a range of sectors, including pharmaceuticals, biotechnology, traditional Chinese medicine (TCM), medical technology, healthcare services, and industrial and environmental biotechnology.
Zhi Yang, founder and managing partner of BVCF, told AVCJ that the new fund will also partner with US venture capital firms to make cross-border transactions. In addition, it plans to form joint ventures with overseas pharmaceutical and medical devices companies, bringing their innovative products and technologies to develop in China.
He added that the firm has already completed two deals of this type.
The fund started investing since 2012 and has backed eight companies so far. Recent transactions include committing $5 million for Jaguar Animal Health, a veterinary drugs developer and a $7.5 million Series A round for Kunshan RiboQuark Pharmaceutical Technology, a joint venture established by US-based Quark Pharmaceuticals and Suzhou Ribo Life Science.
Last August, it led a $25 million Series B for MicuRX Pharmaceuticals, a biopharma firm developing next generation antibiotics.
BVCF was founded in 2005 under its previous name, BioVeda China. The firm is headquartered in Shanghai and its team includes partners with an academic background and extensive operational experience. The firm focuses on investments in life science and healthcare companies in China with an enterprises value of $50-100 million.
MPEP committed to the GP last year after being impressed by the team's ability to leverage domain expertise to find targets at attractive valuation, the LP told in a previous interview.
Other companies backed by BVCF include CITIC Pharmaceuticals, Ealong Biotech, Allegens Medical Science and Technology, Novast laboratories, Sinobiopharma, Cathay Industrial Biotech, Biocytogen, Nexchem, Napo Pharmaceuticals, NOD Pharmaceuticals and Yashentech.
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