Long Hill Capital Closes RMB2 Billion Dual-Currency Fund to Invest in China's Healthcare and Premium Consumer Sectors

VCBeat (WeChat ID: vcbeat) has learned that on July 24, 2018, Changling Capital announced the successful final closing of its second U.S. dollar fund and the initial closing of its first RMB fund, totaling RMB 2 billion. Changling will continue its previously successful thematic investment strategy, focusing on early-stage and growth-stage companies in China’s healthcare and quality consumption sectors.

Amid the precipitous year-on-year decline in VC/PE fundraising in China during the first half of 2018, Changling Capital closed its second U.S. dollar fund in less than three months, with a total raise of $265 million—significantly exceeding its initial target. The fund’s investors include numerous globally renowned pension funds, endowments, foundations, financial institutions, family offices, and funds of funds. Its first RMB-denominated fund also garnered support from a diverse range of institutional investors, including national-level government guidance funds for venture capital, market-oriented funds of funds, and prominent family offices. Following the successful closing of these new dual-currency funds, the total assets under management by Changling Capital have reached RMB 3 billion.

“Technological innovation is transforming every industry in China, giving rise to unprecedented disruptive innovation opportunities in the sectors we deeply focus on,” said Jiang Xiaodong, Founding Managing Partner of Changling Capital. “We are theme-driven, industry-focused investors. Our concentration on vertical niche markets enables us to identify exciting investment opportunities earlier and become the best partners for entrepreneurs.”

Since its founding in 2016, Changling Capital has rapidly emerged as a leading investor in the healthcare and quality consumption sectors. Eighty percent of the projects in its inaugural U.S. dollar fund were initially invested in at Series A; over the past 18 months, these portfolio companies have collectively secured more than RMB 2 billion in follow-on financing. In less than two years, three companies backed by Changling’s team at the Series A stage have achieved valuations exceeding RMB 5 billion each.

The vast majority of investors in Changling’s inaugural U.S. dollar fund have continued their investments into its second fund. Scott Sandell, Global Managing Partner at NEA, stated, “Changling Capital’s focus on healthcare and quality consumer sectors aligns with NEA’s global areas of strength. We have worked with Mr. Jiang Xiaodong for over 13 years and look forward to an even more enduring and close partnership with Changling Capital in the future.”

“Changling Capital’s deep industry insights and its unique, research-driven investment approach give it a strong competitive edge,” said Rebecca Xu, Managing Director at Asia Alternatives. “We are highly satisfied with Changling Capital’s achievements over the past two years and take pride in having been their cornerstone investor since the firm’s inception.”

Changling Capital, established in 2016, is a new generation of theme-driven venture capital funds in China. It currently manages RMB 3 billion in dual-currency capital and is committed to investing in technological advancements and business innovations that bring health and quality of life to every Chinese person. The founder of Changling Capital comes from NEA, one of the largest venture capital funds in the United States, and was responsible for NEA's investments in China from 2005 to 2015, successfully achieving exits exceeding USD 500 million. The investment team members of Changling Capital come from outstanding early-stage venture capital funds in China, including NEA, Matrix Partners China, and Morningside Venture Capital, with a combined total of over 40 years of local venture capital experience in China and more than 20 years of operational experience in China’s most successful technology and healthcare companies.