Legend Capital’s $200 Million Recapitalization

Kirkland & Ellis and Ropes & Gray served as legal counsel.

Legend Capital, a leading venture capital and growth investment firm in China, has closed the transfer of portfolio companies from LC Fund IV, a 2008 fund, into a US$200m continuation vehicle.

The transaction provides Legend Capital with the opportunity to maximize the value potential of the remaining portfolio companies through active management, alongside targeted follow-on capital. The Fund has a five year holding period.

Accounts managed by an affiliate of Hamilton Lane (NASDAQ:HLNE) acted as lead investor in the transaction, with several other prominent institutional investors participating in the syndicate. The investors also committed follow-on capital for strategic investments in the portfolio companies.

Campbell Lutyens acted as exclusive financial advisor to the Fund.

Legend Capital, founded in April 2001, is the independent Venture Capital investment subsidiary under Legend Holdings. In February 2012, Legend Capital took the new Chinese name “??(Junlian)”. Legend Capital is now managing several USD funds and RMB funds with a total AUM of RMB45bn. Legend Capital focuses on innovation and growth enterprises with operations in China or related to China.

Hamilton Lane (NASDAQ: HLNE) is a leading alternative investment management firm providing innovative private markets solutions to sophisticated investors around the world. Hamilton Lane has approximately $488 billion in assets under management and supervision, composed of approximately $66 billion in discretionary assets and nearly $422 billion in advisory assets, as of December 31, 2019.

Founded in 1988, Campbell Lutyens is a global and independent private capital advisor, focused on fund placement and secondary advisory services.

The Ropes & Gray team advising Hamilton Lane was led by asset management partners Isabel Dische (Boston) and Katie Waite (Boston), tax partner Jay Milkes (New York) and benefits partner Bill Jewett (Boston).

The Kirkland team advising Legend Capital was led by investment funds partners Carol Liu (Picture) and Damian Jacobs and included investment funds partner Michael Belsley, employee benefits partner Elizabeth Dyer and tax partner Mike Greenberg.

Involved fees earner: Michael Belsley – Kirkland & Ellis; Elizabeth Dyer – Kirkland & Ellis; Michael Greenberg – Kirkland & Ellis; Damian Jacobs – Kirkland & Ellis; Carol Liu – Kirkland & Ellis; Isabel Dische – Ropes & Gray; William Jewett – Ropes & Gray; Jay Milkes – Ropes & Gray; Katherine Waite – Ropes & Gray;

Law Firms: Kirkland & Ellis; Ropes & Gray;

Clients: Hamilton Lane Inc.; Legend Capital;

Author: Michael Patrini