Health care financial investment company Vivo Capital has actually closed an RMB-denominated fund at nearly 10 billion yuan ($1.4 billion) to utilize international resources and sustain the development of its Chinese portfolio.
The China-focused fund, called ‘Vivo (Suzhou) Health Industry Investment Fund’, drew in capital dedications from city government assistance funds in China, insurer, business banks, and institutional market financiers, Vivo Capital revealed in a post on its WeChat authorities account on Wednesday.
The brand-new fund seeks to purchase pharmaceutical R&D, consisting of the advancement of ingenious drugs, and the production of associated medical instruments, diagnostic and scientific medical gadgets, in addition to medical consumables. Its focused sectors likewise consist of contracted out drug R&D and production services, artificial biology, and other basic health care services.
It will mainly make personal equity (PE) financial investments, primarily development equity funding and mergers & & acquisitions(M&A), in addition to a little protection to equity capital (VC) offers.
Vivo Capital closed the brand-new RMB fund about 19 months after a very first close at 4 billion yuan ($559.8 million) in May 2022.
The launch of Vivo Capital’s RMB fund is “a natural outcome” after the company’s 16 years of operations and financial investments in China and “a crucial sign” of its localisation, stated Shan Fu, Vivo Capital’s handling partner, co-CEO, and CEO of Greater China, throughout a Wednesday event revealing the fund close.
Fu stated biomedicine and health care will be 2 of China’s a lot of dynamic and fastest-growing markets in the next 20 years. “The markets reveal excellent pledge for the development of worldwide Chinese business,” he stated.
Established in 1996, Vivo Capital runs a varied, multi-fund financial investment platform in equity capital, development equity, buyout, and public equities. With about $7 billion in properties under management (AUM), the company has actually raised 14 USD and RMB funds with a portfolio of over 340 public and personal business worldwide.
Headquartered in Palo Alto, California, the Vivo group consists of more than 50 specialists throughout workplaces in Beijing, Shanghai, Hong Kong, Taipei, and Singapore. The group invests broadly in health care throughout all fund methods, covering biotech, pharmaceuticals, medical gadgets, and health care services.
Vivo Capital’s portfolio business in China consist of WuXi AppTec, among Asia’s biggest pharmaceutical R&D services platforms dual-listed on stock market in Shanghai and Hong Kong.
The company is likewise a backer of Chinese vaccine designer Sinovac; China- and US-based commercial-stage biotech business ZaiLab; Lepu Biopharma, which concentrates on oncology rehabs; and Nasdaq-listed, clinical-stage biotech company Legend Biotech.