Lilly Asia Ventures (LAV) has closed its seventh healthcare fund on USD 700m, marking a scaling-back from previous vintages, according to three sources familiar with the situation.

The healthcare-focused manager, which invests globally but has historically maintained significant China exposure, hit the hard cap for LAV Fund VII. There is also an 8% GP commitment on top of the USD 700m in institutional capital, the first two sources added.

LAV closed Fund VI on USD 1.35bn in 2021, having introduced a USD 450m opportunity vehicle that sits alongside a core pool of USD 900m. LPs went into both pools of capital on a pro rata basis. This continued an escalation in fund size, which saw LAV move from USD 450m to USD 750m across its fourth and fifth vintages.

Having dropped the opportunity vehicle for Fund VII, LAV still wanted to raise a core pool of USD 900m, according to the first source. However, following discussions with LPs, the target was set at USD 650m early last year. Backers include Abu Dhabi Investment Authority (ADIA) and several global pharmaceutical companies, the source added.

A statement issued on 14 May by Kirkland & Ellis, which served as fund formation counsel, confirmed the final close without giving the fund size. It said that LAV received strong support from sovereign wealth funds, pension funds, endowments, family offices, corporates, and fund-of-funds.

LAV was established in 2008 as a corporate VC arm of global pharmaceutical firm Eli Lilly, focusing on life sciences investments. It became independent in 2011 and started raising capital from third-party investors in Fund III. The firm has offices in Shanghai, Hong Kong, and Palo Alto.

LAV’s fund sizes largely track fluctuations in China healthcare investment. Early and growth-stage deployment rose from USD 3bn in 2016 to USD 21.7bn in 2021, according to AVCJ Research. Biotech was the primary driver, accounting for USD 477m of deal flow in 2016 and USD 8.7bn in 2021.

Sell-offs in the listed biotech space globally, combined with uncertainty over valuations and exits in China, precipitated a drop in healthcare investment to USD 10.7bn in 2022. The declines continued over the next two years, when USD 6.8bn and USD 4.2bn was put to work.

LAV remains active in China. In 2025 to date, it has participated in rounds for the likes of StairMed Technology, Rona Therapeutics, and EnChannel Medical, and co-led a USD 100m Series C for Pulnova Medical. The round was oversubscribed, with investors pointing to the medical device maker’s scope for global expansion.

LAV also benefited from the surge in global pharma M&A in China 18 months ago, as Gracell Biotechnologies, a company it had supported before and after a 2021 NASDAQ IPO, was acquired by AstraZeneca for USD 1bn.

LAV declined to comment on fundraising.