Legend Holdings’s venture capital spinout has executed a secondary transaction to close its healthtech-oriented vehicle, LC Healthcare Continued Fund.

Legend Capital, a China-based venture capital offshoot of conglomerate Legend Holdings, has closed a healthcare technology-focused vehicle dubbed LC Healthcare Continued Fund I at $270m.

Accounts managed by alternative investment manager Hamilton Lane and private equity firm Coller Capital co-led the transaction, with participation from unnamed institutional investors.

The capital was secured through secondary financing, which was carried out alongside a transfer of healthcare portfolios of two vintage funds. The new vehicle intends to supply cash flow, help boost financial returns for existing shareholders and provide follow-on funding for portfolio companies.

Founded in 2001, Legend Capital manages VC and private equity deals for Legend Holdings through its dollar and renminbi-denominated funds with $9bn under management. It targets entrepreneurs based in or affiliated with China’s innovation ecosystem.

Legend Capital had backed more than 500 private and public companies by last year, and it has deployed $1.7bn in healthtech deals since it began investing in the space in 2007.

Its healthcare portfolio includes developers of innovative drugs, biotechnology, medical devices, diagnostic technologies, medical services and digital healthcare products.

Jafar Wang, co-chief investment officer and managing director of Legend Capital, said: “The deal, which was completed in an efficient process, helps enhance the 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 a 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.”

Edison Fu

Edison Fu is head of Asia development at Global Corporate Venturing.