With the close of a second fund bringing its managed capital to around $400 million, Quan Capital plans to stick to its strategy of investing in innovative therapeutics, according to Managing Director Marietta Wu.
Wu told BioCentury the firm closed Quan Fund II at $250 million with backing from LPs that come from “most of the major categories of institutional investors” and plans to invest in both early and late stage companies.
Quan Capital's inaugural Quan Venture Fund L.P. closed in 2017 at about $150 million with plans to invest in 10 to 15 companies. The fund has focused on novel therapeutics and also has invested in related areas such as enabling technologies, companion diagnostics and precision medicine (see “Building Quan”).
The first fund's portfolio includes 11 companies and counts among its exits Armo BioSciences Inc., which Eli Lilly and Co. (NYSE:LLY) acquired for $1.6 billion last year.
Quan has invested in at least three companies so far this year. It co-led a tranched $70 million series B round for Tempest Therapeutics Inc. (San Francisco, Calif.) and participated in a series B round by Crescendo Biologics Ltd. (Cambridge, U.K.) for the same amount. It also invested in a $67 million series D round for Centrexion Therapeutics Corp. (Boston, Mass.).
Wu and fellow managing director Samantha Du co-founded Zai Lab Ltd. (NASDAQ:ZLAB), of which Du is chairman and CEO. Before joining Quan full-time, Wu was Zai’s COO. Quan's third managing director, Stella Xu, is the former VP and site head of Roche Innovation Center Shanghai.