Financial services firm Industrial Bank and insurance group Ping An’s Real Estate Investment unit have backed the inaugural healthcare-focused fund raised by China-based venture capital firm Shenzhen Capital.
Shenzhen Hongtu Healthcare Private Equity Fund is aiming for a first close of about $116m on its way to an overall RMB2bn ($290m) figure.
State-owned vehicle Shenzhen City Guidance Fund Investment, private equity firm Before Capital and fund manager Kunpeng Capital are also among the fund’s limited partners.
Founded in 1999 by Shenzhen’s municipal government, Shenzhen Capital has invested $5.9bn to date and currently has 939 businesses in its portfolio.
The firm’s latest fund will seek out healthcare-related investment opportunities with the potential to support the sector’s innovation and growth.
Shenzhen Capital prioritises segments including IT, new media, biopharmaceuticals, energy, environmental protection, consumer goods, chemical engineering and equipment manufacturing.
The new fund comes after Shenzhen Capital secured $525m in December 2018 for an M&A-focused vehicle dubbed Red Earth M&A Fund, from LPs including Shenzhen City Guidance Fund, Shenzhen Huitong Financial Holdings and Utrust Fund, the latter a VC vehicle allied to asset management services firm UTrust Holdings.
Other VC funds under Shenzhen Capital’s management include cross-border partnerships Sino-Israel Fund, Sino-Singapore Fund and Sequoia Innovation Fund.