Legend Capital has closed the LC Healthcare Continued Fund I, having raised USD270 million for a secondary transaction that involves healthcare portfolios of two older vintage funds.
The fund provides liquidity and helped to enhance returns for existing investors while maximising the value of the fund’s portfolio with new follow-on capital.
The deal was co-led by accounts managed by Hamilton Lane and Coller Capital, with participation from other institutional investors. Lazard was the sole financial advisor and Gibson Dunn acted as the legal counsel for Legend Capital while Ropes & Gray acts as the legal counsel for Hamilton Lane and Coller Capital.
Jafar Wang, Co-Chief Investment Officer and Managing Director of Legend Capital, says: “The deal, which was completed in an efficient process, helps enhance liquidity of existing fund investors, and also demonstrates the confidence of secondary investors in the quality and growth potential of our portfolio assets as well as our post-investment management capabilities. The fund allows longer runway for our portfolio companies, where we can support them to grow into industry leaders and assist them in accessing the public markets. Legend Capital has a long-term focus on investment into highly innovative and fast growth companies, contributing to the development of China’s healthcare sector.”
Mingchen Xia, Co-Head of Asia Investments at Hamilton Lane, says: “We are excited to see the successful close of this transaction. China’s healthcare sectors present attractive investment opportunities and Legend’s experience and strong track record have made us confident to co-lead this deal. In the meantime, the private equity secondary market in China has continued to grow and evolve rapidly in the last few years and we look forward to exploring more interesting and innovative secondary transactions going forward.”
“Coller Capital is excited to co-lead this complex GP-led transaction of quality assets, having built a strong relationship with Legend Capital over many years,” says Peter Kim, Partner, Head of Asia, Coller Capital. “Legend Capital has an impressive long-term track record and its commitment to delivering returns for investors is strongly aligned with Coller Capital’s own values.”
Legend Capital’s healthcare practice started in 2007, and has since grown into a solid ecosystem across various healthcare segments. The firm has to date deployed USD1.7 billion in healthcare investments, and boasts nearly twenty public companies that are leaders in innovative drugs, biotechnology, medical devices, diagnostic technologies, medical services and digital healthcare sectors. During the past three years, Legend Capital has returned more than USD1.7 billion to its investors from healthcare exits.