China’s Quan Capital closes second healthcare fund short of $300m target

Photo by Henk Vrieselaar on Unsplash

China-based healthcare-focused venture capital firm Quan Capital has closed its second fund – Quan Venture Fund II – with $275 million in commitments, according to an AVCJ report.

The amount raised, however, is lower than the $300-million target that the firm set when it launched the fund in August 2018. The firm was established by the founder of US-listed Chinese drug developer Zai Lab.

Quan Venture Fund II’s total amount raised is around the same corpus that another China-based VC firm, Shenzhen Capital Group, is seeking for a healthcare fund that will invest in companies that seek to disrupt the current healthcare pattern in the country.

The firm’s inaugural fund – Quan Venture Fund LP – closed at $150 million last year.

Quan Capital operates in a market whose value is forecast by industry experts to reach 20 trillion yuan (2.84 trillion) by 2030. According to the “Healthy China Action (2019-30)” plan released in July, China is set to increase the share of the healthcare industry in the national GDP from the current 5 per cent to 15 per cent by 2030.

Headquartered in Shanghai, Quan Capital invests globally in healthcare, pharmaceutical, and biotech startups. On its website, the firm says it identifies, incubates, and invests in early and growth-stage companies with a specific focus on those industries.

Quan Capital is headed by Dr. Samantha Du and has very close ties to Shanghai’s Zai Lab, the Chinese drug developer listed in the US. Du is founder and CEO of Zai and Dr. Marietta Wu, managing director at Quan, is also a co-founder of Zai.

The firm is investing in a space that has seen increasing interest from venture capital and private equity players.

Last month, KK Fund invested an undisclosed amount in Vietnam-based healthcare startup Med247, which operates its own clinic and integrates its technology in helping patients manage their medical records and appointments with doctors.

Buyout firms KKR, Blackstone, and CVC have also expressed interest in a stake in the hospital unit of Philippines’ Metro Pacific Investments Corp, which values the hospital at about $1.5-2 billion.

Also last month, Singapore-based healthcare firm Novena Global Lifecare has also increased its footprint in Taiwan’s healthcare market with further acquisitions of three healthcare companies,

In July, China-based venture capital firm Shenzhen Capital Group launched a 2 billion yuan ($291 million) healthcare fund aimed at investing in companies that seek to disrupt the current healthcare pattern in the country.

In a statement on its WeChat official account, Shenzhen Capital said the debut healthcare fund – Shenzhen Hongtu Healthcare Private Equity Fund – would raise 800 million yuan ($116 million) in the first close of the fundraising.

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.