Hamilton Lane, Coller co-lead healthcare continuation vehicle

Legend Capital raised $270m for a transaction involving Chinese healthcare assets from two older funds.

Hamilton Lane and Coller Capital have co-led a fund restructuring of healthcare assets owned by Beijing-based Legend Capital.

The two firms were joined by other institutional investors in a transaction that resulted in the creation of LC Healthcare Continued Fund I, a $270 million vehicle, according to a statement.

“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,” said Mingchen Xia, co-head of Asia investments at Hamilton Lane.

“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.”

The deal provided liquidity to existing investors as well as a longer runway for the portfolio companies, with an eye towards accessing public markets, according to Legend co-chief investment officer Jafar Wang.

It is unclear whether the $270 million included follow-on capital.

Legend has been investing in healthcare since 2007, and in that time has deployed $1.7 billion across various segments in the sector.

Lazard was the sole financial advisor on the transaction. Gibson Dunn acted as legal counsel for Legend Capital while Ropes & Gray acted as legal counsel for Hamilton Lane and Coller Capital.

Chinese GPs have been been active in secondaries in recent months. In May Buhuo Ventures completed a dollar-yuan restructuring resulting in its first US dollar denominated fund, Secondaries Investor reported. HarbourVest Partners and LGT Capital Partners backed a $600 million similar deal in September involving Beijing-based IDG Capital.