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Financing › Details

Life Sciences Partners–SEVERAL: investment, 202111 announced LSP 7 fund with €850m incl EIF with expected final closing at €1b

 

Period Period 2021-11-04
Region Region Europe
Organisations Money taker LSP 7 fund (Life Sciences Partners)
  Group Life Sciences Partners (LSP)
  Money source SEVERAL
Product Product  LIFE SCIENCES
Person Person Godard, Alain (EU (govt) 202004 Chief Executive of EIF)
     

Life Sciences Partners (LSP). (11/4/21). "Press Release: LSP Raises Record $1 Billion for Its 7th Flagship Life Sciences Fund". Amsterdam.

LSP, a leading European life sciences investor, announces today that it has raised €850 million (~$1 billion) for its 7th generation flagship life sciences fund: LSP 7. This is the first time a European life sciences venture fund has reached a fund size of $1 billion, marking what LSP believes is a milestone for the industry. Given the current interest of investors and several additional firm commitments, LSP anticipates the fund will ultimately reach $1.2 billion (€1 billion). In total, LSP has until today raised $3.5 billion (€3 billion) from investors.

LSP believes that the success of this fundraise reflects not only its 33-year track record and the trust investors place in LSP’s investment professionals, but also underscores the maturity and the potential of the European life sciences sector. The COVID-19 crisis has demonstrated the importance of diagnostics, vaccination and drug development and the need for investment in innovation. Of the four leading COVID-19 vaccines currently on the market, three were developed by biotech companies based in Europe.

LSP is convinced that it is well positioned to capitalize on the growth of the European life sciences sector given its experience in building European companies to date. The firm has developed over 150 companies, many of which have brought important new medications or technologies to patients with a high unmet need, serving large indications such as oncology, cardiology and diabetes, as well as rare diseases. LSP’s portfolio companies are currently engaged in over 100 clinical trials, comparable to the pipeline of the largest pharmaceutical companies.

Given the investor demand, LSP was able to raise the $1 billion in just seven months, significantly surmounting the fund’s initial target of $875 million (€750 million). LSP 7 attracted capital from a diverse, institutional investor base including pension funds, insurance companies, wealth managers, government funds such as EIF*, as well as family offices. Many investors in previous funds also invested in LSP 7. Notably, LSP has commitments from multiple top-tier pharmaceutical companies, which LSP believes validates its market position.

The LSP 6 portfolio has been completed with 17 companies, including Arvelle Therapeutics (acquired by Angelini Pharma for €960 million) and Nkarta (IPO Nasdaq, current market capitalization $600 million). LSP 7 will invest, like the predecessor funds, in 15-20 innovative drug development or medical technology companies, mainly coming from Europe. The fund has already completed three investments: Egle Therapeutics, a French biotech company focused on developing T-regulatory cell therapies for oncology and auto-immune diseases; an undisclosed German company – founded by LSP – developing innovative radiotherapeutics; and Evommune, a US biotech company developing a unique chronic inflammation pipeline.

‘’We thank our loyal and new investors for their trust in LSP. Our track record, our long-standing history in the industry, as well as our stable and experienced team of 35 professionals have helped us raise this momentous amount. We will continue our strategy of the past decades of investing in early-stage life sciences companies, but the size of the fund enables us to be an even stronger lead investor. With LSP 7, we can meaningfully contribute to the growth of our industry and ensure that European innovations make it to patients faster,” comments René Kuijten, Managing Partner of LSP.

EIF Chief Executive, Alain Godard said: “The COVID-19 crisis has further emphasized the need to keep on innovating in the life sciences sector for patients, for our healthcare systems and for Europe’s competitiveness. Today’s agreement shows that investing in European life sciences companies in their early and development stages is an attractive value proposition for investors with long term strategies. We hope that this deal will have a further signalling function for the life science sector both in the Benelux region and across Europe”.


About LSP

LSP is a European investment firm providing financing for life sciences and health care companies. LSP’s management has raised over $3.5 billion (€3 billion) and supported the growth of 150 companies since it started to invest in 1988, including signature deals such as argenx, Crucell and Neuravi. With offices in Amsterdam, Munich and Boston, LSP currently has the possibility to invest through five strategies, each having a distinctive investment scope and a dedicated team: LSP 7 invests in private early- to late-stage drug development and medical technology companies; LSP HEF 2 focuses on private late-stage medical technology companies; the LSP Dementia Fund invests in companies targeting neurodegenerative diseases; LSP Public targets public healthcare companies; and EBAC is LSP’s SPAC exclusively focussing on European biotech. LSP is an active contributor to the global life sciences industry and the European life science eco-system by assuming roles as initiators, founders and board members in various private and public bodies and organizations, for example being founder and board member of the Oncode Institute. For more information: lspvc.com

LSP 7 is managed by LSP Advisory B.V., a manager of alternative investment funds. LSP Advisory B.V. is included in the public register published at the website of the Dutch authority for the financial markets (Autoriteit Financiële Markten, AFM). MVision Private Equity Advisers is acting as the lead global strategic fundraising adviser for LSP 7.


For more information please contact:

Dr. René Kuijten, Managing Partner of LSP
rkuijten@lspvc.com


Information on risks

An investment in any LSP managed fund will involve significant risks due, among other things, to the nature of the investments of the funds and there can be no assurance that any of the LSP funds’ objectives will be realised or that there will be any return of capital. Investors in LSP funds should have the financial ability and willingness to accept the specific risks associated with investing in any of the LSP funds, including the risk of loss of the entire investment. Any such risks are further set out in the documentation relating to the respective LSP fund. Past performance does not predict future returns. Certain information in this press release relates to forward-looking statements, including, but not limited to, projections and other estimates (such as estimates of returns or performance), and is based on certain assumptions that are subject to change. Due to various risks and uncertainties, actual results, performance or achievements may differ materially from the future results, performance or achievements as expressed or presented in the forward-looking statements contained herein. This is a marketing communication.

Please refer to the information memorandum of LSP 7 and to the KID before making any final investment decisions. This press release is not for distribution outside the countries in the European Economic Area where LSP obtained a marketing passport to market LSP 7.


*Among others the European Investment Fund (EIF). The capital invested by EIF in LSP 7 originates from (amongst others) the LfA – EIF 3 Facility, the German Future Fund – EIF Growth Facility, the Dutch Future Fund, the Risk Capital Resources mandate and the Pan-European Guarantee Fund – Target Fund Size Facility, implemented by the EIF with the financial support of the Participating Member States.

   
Record changed: 2021-11-04

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