TVM reaches $50m first close on China pharma fund

The new vehicle, China BioPharma Capital I, has received a commitment from domestic drug maker Chongqing Lummy Pharmaceutical. The Chinese company sees TVM as a strategic partner in bringing medical services and technologies into the country. TVM will also open an office in Hong Kong from where Mirko Scherer will lead its China coverage.

Part of the TVM Capital Group, TVM Capital Life Science has been investing in healthcare innovation for 30 years and is currently deploying its seventh fund in Europe and North America. The team, which is based in Munich and Montreal, has completed more than 120 investments and over 90 exits, including 40 IPOs, since inception.

"This new fund is an exciting opportunity to expand our reach into China and to leverage the unique deal flow and deal making capability of our Venture Capital teams in Munich and Montreal. We are very happy to welcome Mirko who will lead our efforts in China and we expect our investment team dedicated to China to grow substantially in the near future," Hubert Birner, managing partner of TVM Capital Life Science, said in a statement.

A number of PE and VC investors are looking to leverage China's rising demand for quality healthcare services. The likes of Ally Bridge, BVCF, Fidelity Growth Partners, Silicon Valley-based Essex Woodlands and newly formed Aequus Asia Capital Partners are all to some degree pursuing cross-border strategies intended to help commercialize Western technologies in China.

Healthcare-focused Vivo Capital closed its eighth fund at $750 million last month. The corpus will be split 50-50 between the US and China. The firm's 2005 vintage fifth fund had just a 5% allocation for China.

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