Breaking The Barriers Of Fund Cycle: Junlian Capital Completed The $270 Million Medical And Health Renewal Fund Transaction

May 19 news, Junlian capital announced a medical renewal fund transaction today.

The size of the renewal fund is US $270 million, which includes several portfolios of Junlian capital's past two medical funds. It is jointly led by Hamilton lane and coller capital, and followed by other internationally renowned institutions.

This means that, on the one hand, Junlian capital can provide liquidity and generate considerable returns for investors of past funds through transactions. On the other hand, the new transaction will break the limit of the fund cycle, allowing the team to expand the value of the fund portfolio to a greater extent through longer corporate company and post investment support.

From the practical experience of global dollar private equity secondary market, this method can bring relatively high return with relatively low risk, so this asset class is favored by investors.

Wang Junfeng, CO chief investment officer / managing director of Junlian capital, said: "the transaction was completed in a very short period of time, meeting the liquidity needs of fund investors and maximizing their interests, which reflects the high recognition of international investors for our portfolio asset potential and post investment management ability."

Reappearance of renewal fund transactions

This is the second renewal fund transaction of Junlian capital.

In February last year, Junlian capital announced the completion of a US $200 million renewal fund transaction, providing liquidity for investors of Junlian capital LC fund IV fund. The asset package of the transaction includes 12 invested projects. The fund cycle of the renewal fund is five years. The transaction is led by Hanling capital and followed by other internationally renowned institutions.

Therefore, the renewal fund transaction of Junlian medical fund is another cooperation between Junlian medical fund and Hanling capital.

"The investment opportunities shown by China's medical and health industry, as well as the rich experience and good performance of Junlian capital, are the confidence of us to jointly lead the investment in this renewal transaction," said Xia Mingchen, CO head of Asian investment of Hanling capital

Peter Kim, the representative of the co lead investor of the transaction and the managing partner of Kohler capital in Asia, said that the cooperation strengthened the deep partnership between the team and Junlian capital over the years: "Junlian capital has sustained excellent performance, adheres to the concept of creating good returns for investors, and is highly consistent with Kohler capital's corporate values."

The reporter learned that since 2007, Junlian capital has gradually established its own large health industry ecosystem in various subdivision fields of medical and health.

At present, Junlian capital has invested more than 10 billion yuan in innovative medicine and biotechnology, medical devices and diagnostic technology, medical services and digital medicine, and has invested in nearly 20 leading listed enterprises. In recent three years, Junlian capital has achieved more than 10 billion cash returns for investors in the medical and health industry.

Truly invest early, invest long and invest in innovation

In an interview on PE secondary market trading at the beginning of last year, a domestic US dollar fund partner told 21st century economic news that although the PE secondary market has a history of more than 20 years in the European and American markets, there are not many partners who have rich project experience in Asia, have a local team and are familiar with the Chinese market.

A year later, although the global private equity market has not yet completely come out of the shadow of the new crown pneumonia epidemic, the capital's enthusiasm for the Asia Pacific market, especially the Chinese market, has not weakened.

In a recent speech, Yang Zhan, investment director of Kohler capital in charge of Asia business, said that at present, GP dominated transactions and LP share transactions accounted for half of the global market, and expected that in the process of the continuous development of private equity secondary market, the solutions of the whole market would be constantly updated.

In February this year, Kohler capital established Kohler (Beijing) Private Equity Fund Management Co., Ltd. in Beijing, becoming the first foreign-funded s fund manager to settle in Beijing. Yang Zhan is also the general manager of the fund management company.

According to the global private equity barometer released by Kohler capital, most (91%) of the limited partners in the Asia Pacific region welcome the secondary trading projects led by GP, and believe that it will help to increase the choice of LP and GP in private equity, a low liquidity asset class.

The transaction of Junlian capital shows similar characteristics, and the two joint leading investors especially emphasize the importance of continuous performance creation ability of Junlian capital.

The 21st century economic report reporter learned that Junlian Capital Medical USD phase I fund was raised in 2016. In the fund matrix of Junlian capital "comprehensive Fund + industry professional fund", TMT and medical professionals mainly invest in early and middle-term projects.

Talking about the significance of the renewal fund transaction, Wang Junfeng said that the renewal fund can let the team have more time to accompany the growth of the enterprise, and can truly practice the concept of "early investment, long-term investment and innovation" in investment practice.

?