China’s Legend Capital closes healthcare continuation fund after $270m secondary deal

Photo by Hush Naidoo on Unsplash

Legend Capital, a subsidiary of China’s Legend Holdings, announced that it has closed its healthcare continuation fund — LC Healthcare Continued Fund I  — having raised $270 million from a secondary transaction.

A continuation fund is a vehicle that takes on the portfolio assets of a vintage fund that is nearing the end of its lifespan. LPs are given the option to cash out, or to stay invested by recommitting to the new vehicle.

The latest secondary transaction involved assets from Legend Capital’s two older vehicles, the VC firm said in a statement. The latest fundraising was “co-led by accounts managed by Hamilton Lane and Coller Capital, with participation from other institutional investors”.

Hamilton Lane, a Nasdaq-listed global alternative asset manager, is a long-term limited partner (LP) in Legend Capital. Coller Capital is a UK-based leading investor in the private equity secondary market.

Global leading financial advisory and asset management firm Lazard served as the financial advisor for the deal, while Gibson Dunn and Ropes & Gray acted as legal advisors, according to a company statement. 

In February 2020, Legend Capital had announced a $200 million transaction that extended the holding period of its LC Fund IV, by transferring the fund’s assets to a continuation vehicle with a holding period of five years. That deal was exclusively led by Hamilton Lane. 

Legend Capital, established in 2001, manages USD funds and RMB funds with a total size of $9 billion with a focus on innovation and growth startups in China and other geographies. As of 2021, Legend Capital has invested in over 500 companies including Bloks Group, RiboBio, Access Medical Systems, Dearer, FITURE, and StoneWise. 

Since 2007, the firm ramped up efforts expanding to the healthcare industry. As of now, it has poured more than 10 billion yuan ($1.56 billion) across innovative drugs, biotechnology, medical equipment, diagnostics, medical services, and digital healthcare.

It claimed that nearly 20 of its portfolio companies got listed. This includes Hong Kong-listed cancer screening firm New Horizon Health, Nasdaq-listed US biotech firm NexImmune, and Nasdaq-listed e-commerce platform Wish.

Over the past three years, Legend Capital has created more than 10 billion yuan ($1.56 billion) in cash returns for its limited partners (LPs), it said.

“China’s private equity secondary market has been in growing over years, hereby we expect better opportunities popping up in the future,” said Hamilton Lane co-head of Asia Investments Mingchen Xia in the statement.

Hamilton Lane had collected $3.9 billion for its fifth secondaries vehicle in February this year from pension funds, Taft-Hartley plans, sovereign wealth funds, endowments, foundations, family offices, qualified high-net-worth individuals, and other financial institutions from around the Americas, EMEA, Asia, and Israel.

Legend Holdings is an investment holding company with interests spanning finance, real estate, and information technology. It is a majority owner in the Chinese consumer electronics giant Lenovo.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.