China Everbright Limited, a Hong Kong-based financial services affiliate of state-owned conglomerate China Everbright Group, has teamed up with the local authorities in eastern China’s Taizhou city to set up a new fund for healthcare investments in the region.
The new fund, whose name can be translated into “Taizhou-Everbright Healthcare Industry Fund,” already reached the first closing with 1 billion yuan ($142 million) in capital commitments. The fund has targeted to collect an aggregate of 2 billion yuan ($284 million), according to a recent statement.
CEL Fund-of-Fund, an investment vehicle subordinated to China Everbright Limited, manages the new healthcare fund. The vehicle specializes in establishing industry fund of funds (FOFs) with local governments, financial institutions and large-scale state-owned enterprises to drive local industry and economic development, shows the company website.
The fund will primarily make investments in “key development areas” underscored by the local government in Taizhou and Taizhou National Medical High-Tech Development Zone, the country’s first national-level medical high-tech district which is also known as “China Medical City,” said China Everbright Limited in the statement.
These sectors include biopharmaceutical, high-performance medical apparatus and instruments, high-end medical equipment manufacturing, energy conservation and environment protection, new energy, new materials, and next-generation information technology, among others.
The healthcare fund took CEL Fund-of-Fund’s total assets under management (AUM) to nearly 20 billion yuan ($2.84 billion), according to the statement.
CEL Fund-of-Fund is said to have committed capital to some of the most high-profile investment companies, such as Sequoia Capital, Matrix Partners, Hillhouse Capital Group, Walden International, and Chinese private equity firm Boyu Capital, which was founded by the grandson of former Chinese leader Jiang Zemin. The state-owned investment behemoth backs enterprises in the fields of TMT, healthcare, advanced manufacturing, consumption, culture and entertainment, as well as new energy.
China Everbright Limited has also introduced private equity FOFs in cooperation with the local governments in southern China’s Hunan province and the eastern coastal city of Liyang, Jiangsu province since 2018.