Having been founded in 2005, the private equity and venture capital firm had previously established three funds — one in 2006, the second in 2008 followed by another in 2014. Its third fund, BVCF III, hit its final close with $200 million from Adveg, Mayo Clinic Foundation, International Financial Corporation, Obviam, and Novartis.
BVCF is expected to secure a first close for the fourth fund in the next few months, according to people close to the deal,the report in China Money Network added. It is also expected to secure a final close by end-2016.
The fund will target early and growth-stage pharmaceuticals, biotechnology, traditional Chinese medicine and healthcare services companies, the same publication added.
There are over 28 companies in its portfolio, most of which are pharmaceutical companies. BVCF has also exited its stake in various companies including CITIC Pharmaceuticals, Ealong Biotech, Jaguar Animal Health, and Cotech Biotech. A number of the companies backed by BVCF also belong to the medtech device space, such as Visunex Medical, Allgens Medical and Nuelle, Inc.
The founder and managing partner of BVCF is a doctor named Yang Zhi, who owns more than 10 US and international patents, said to earn multinational corporations more than $25 million.
On the BVCF website, Yang wrote, “The future presents us with a lot to look forward to: deregulation over private hospitals and multi-hospital practice of physicians, greater government endorsement on local innovation and R&D improvement, a more open and dynamic capital market, all of which will bring the Chinese healthcare industry to an unprecedented height, opening up a new window of “historic opportunities” for all.”
The company has based operations out of Shanghai, and also operates out of an office in Beijing.
According to an article on The Pharma Letter, venture capital firms backed $414 million worth of investments in the Chinese drug industry, which is a 23 per cent year-on-year increase.