China’s Legend Capital has completed raising RMB1 billion (US$156 million) for its second RMB healthcare fund, according to an announcement on its official WeChat account.
The fund will invest in innovative medicine, precise treatment, medical devices, diagnostic technologies, medical services, and genetic technologies. It will also expand from early-stage to later-stage investments.
"Investments in the medical industry tend to have long business cycle and slow growth. Many investors are tempted to get involved, but are also afraid of getting hurt," said Wang Junfeng, managing director at Legend Capital. "Experienced investors do well in portfolio management and balance their investments in drugs, medical devices, diagnostics technologies and medical services."
Since 2008, Legend Capital’s medical team has participated in more than 70 projects worth more than US$700 million. It is the lead investor in 85% of these projects. Examples of its IPO exit include pharmaceutical preparation manufacturing firm WuXi Biologics, medical laboratory firm Guangzhou Kingmed and pharmaceutical firm Yunnan Hongxiang Yixintang Pharmaceutical Co., Ltd.
The firm also said it will start raising funds for its second phase U.S. dollar-denominated healthcare fund in the third quarter.
Founded in 2001, Beijing-based Legend Capital manages several USD funds and RMB funds with a total asset under management of RMB35 billion (US$5.5 billion), and focuses on innovation and growth enterprises with operations in China or related to China.