HighLight Capital, a China-based life sciences investor, has completeda first close of USD 540m on its fourth US dollar-denominated fund. Theoverall target is USD 650m.

The fund launched in March and the first close came in July, with existing investorsaccounting for 85% of commitments, Steven Wang, the firm's founder and CEO, toldMergermarket, AVCJ's sister publication. Existing LPs include China InvestmentCorporation (CIC), LGT Capital Partners, HarbourVest Partners, and Goldman Sachs.

Wang said that HighLight is looking to bring in sovereign wealth funds, insurers,conglomerates, and family offices from Europe, Southeast Asia, and the Middle East asnew investors.

Founded in 2014, the firm has USD 2.5bn in assets under management (AUM) across fourUS dollar funds and four renminbi vehicles. The total includes USD 400m in co-investment.The first three US dollar funds closed in 2014, 2017 and 2020, respectively, on USD 200m,USD 250m and USD 450m.

Distributions to paid-in (DPI) on Fund I exceed 2x, while Fund II is on more than 1x, Wangadded.

New investments from Fund IV include a China-based contract development andmanufacturing organisation (CDMO) and an Indonesian vaccine developer. Average chequesizes are in the USD 20m-USD 25m range.

Around two-thirds of HighLight's overall portfolio comprises disease treatment anddiagnosis companies, while the remainder is taken up by nutrition, probiotics, baby care,cosmetics, and consumer wellness companies, said Wang. The firm plans to continuewidening the scope of its coverage in the broader life sciences space, including non-healthcare deals.

HighLight has seen 24 portfolio companies go public and a further 15 have been exited bytrade sale. The listed contingent includes pharmaceutical R&D outsourcing player WuXiApptec, contract research organisation Pharmaron, vaping technology specialist SmooreInternational, and tea house chain operator Nayuki.