GL Capital, a healthcare-focused private equity firm in China, is raising a single-asset continuation vehicle (CV) for SciClone Pharmaceuticals, according to multiple sources familiar with the matter.

Two of sources said the CV would be approximately USD 230m in size. The first source and a fourth source added that Abu Dhabi Investment Authority (ADIA) is the lead investor. Rede Partners is advising on the transaction, which has yet to close.

According to a fifth source, the deal includes a significant GP commitment. The goal is to enable GL Capital to retain control of the business while delivering liquidity to existing fund investors. The private equity firm has already made distributions of over USD 1bn since the onset of COVID-19, the source claimed.

The CV will extend GL Capital’s involvement with SciClone beyond eight years. It participated in a USD 605m take-private of the company, which was then listed in the US, in 2017 alongside three other investors. Following a re-listing of SciClone in Hong Kong in 2021, it completed a solo take-private transaction last year at a market capitalisation of approximately USD 1.5bn.

This was a cross-fund transaction, with the private equity firm’s fourth fund, GL China Opportunities Fund IV, taking out positions held by its first and second funds. Fund IV closed on USD 500m in early 2024, having spent about two years in the market.

GL Capital, ADIA, and Rede declined to comment.

Jeffrey Li, GL Capital’s founder and CEO, spoke to AVCJ in September 2024, a couple of months after the take-private closed. He noted that SciClone was undervalued as a public company and returning to private ownership would help streamline strategic initiatives. Value creation efforts over the next three years were expected to focus on business development and M&A.

“SciClone has strong cash flows, but its product line is relatively straightforward, and highly dependent on one core product – Zadaxin [a hepatitis B treatment]. In the long term, we aim to develop more blockbuster products,” Li added.

“SciClone focuses on immunity, oncology, and infectious diseases, so we will look for assets in these fields. We are interested in products with growth potential and teams with strong R&D capabilities. Many companies are now available for investment or acquisition.”

SciClone’s priorities include scaling commercial operations, advancing pipeline execution, and pursuing selective business development, the fifth source said. Revenue has grown by more than 70% in the last five years and EBITDA has significantly expanded, the source added, “despite regulatory changes and pandemic-related disruption.”

The last annual results filed before the take-private were for the 2023 calendar year. SciClone posted revenue of CNY 3.15bn (USD 442m) and net profit of CNY 1.12bn, representing year-on-year gains of 14.8% and 31.2%, respectively. Operating cash flow reached CNY 1.4bn.

The SciClone CV would be Asia’s fourth-largest such deal of 2025 to date. Two of the other three involve China assets. IDG Capital raised USD 500m for a multi-asset CV in which ByteDance represented the largest holding, while KKR secured at least USD 300m for a single-asset CV for fungal biotech business Sylvan.

Another two CVs, both at an advanced stage, are expected to surpass SciClone in size, though neither has a China connection. CVC Capital Partners is seeking USD 600m for a single-asset CV for South Korea-based travel platform GC Company, and India’s Kedaara Capital is finalising a USD 310m multi-asset CV for eyewear retailer Lenskart and insurance provider Care Health.