LSP and EQT join forces in healthcare investing
LSP, one of the leading European life sciences investors, announces today that it will join forces with EQT AB (“EQT”), one of Europe’s largest private equity firms and among the top 10 worldwide. The acquisition of LSP by EQT is driven by the complementarity of investment expertise between the firms as well as significant growth opportunities and scale benefits. As part of EQT, LSP will continue its strategy and operations as it has done successfully over the past years.
With EQT’s broad investment platform and distribution power, LSP can sustain the fast growth it has experienced over the past two decades. LSP has raised over €3 billion and has supported the growth of more than 150 companies since inception. As part of EQT, with more than €70 billion in assets under management and 1,100 employees, of whom approximately 80 are dedicated to fundraising activities, LSP can continue to grow its business while leveraging EQT’s capabilities, including fundraising, investor relations and administrative support. This strong backing will allow LSP to devote more time to deal-making and helping its portfolio companies to thrive.
LSP will strengthen EQT’s position as one of the leading and most active private market investors in the healthcare sector. With its team of highly experienced professionals with deep scientific knowledge, LSP will complement EQT’s expertise of investing in mature healthcare companies and expand on EQT’s ability to assess early-stage scientific risk. The LSP network in the life sciences community has been developed over 33 years and is complementary to EQT’s global healthcare advisory network. For LSP, the combined network and enriched platform in healthcare will widen LSP’s footprint in the industry, augment the deal flow and increase exit capabilities.
In addition to the strategic advantages, LSP and EQT have a clear cultural fit and a shared vision on life science and healthcare innovation. At EQT, the LSP team will be able to continue its successful strategy of the past decades of investing in early-stage life sciences companies. Further, LSP will remain independent in its investment processes and decisions. All LSP partners and staff will be welcomed as part of EQT and are excited about the prospects of together developing a global life sciences and healthcare powerhouse to propel the industry forward at an unprecedented pace.
René Kuijten, Managing Partner at LSP, and incoming Partner and Head of EQT Life Sciences, said, ‘’Europe has many attractive life sciences companies. Together with EQT, one of the largest European private equity firms with more than €70 billion under management, LSP can select, develop, and finance these opportunities even better than before. Given the strong cultural fit and the complementarity between our organisations, we are convinced that joining forces is a win-win for our investors, our portfolio companies, our LSP colleagues, and the broader European life sciences ecosystem.”
Martijn Kleijwegt, Founder and Managing Partner at LSP, added, “The partnership with EQT not only accelerates LSP’s growth opportunities in an unprecedented way but also guarantees the long-term continuity of LSP’s active role in the life sciences industry in Europe and beyond. Having started the firm in 1998, I feel proud to have built the firm with all the partners and other colleagues, and I feel very good about where it has landed today.”
Per Franzén, Partner and Head of EQT Private Capital, said, “EQT has a long history of developing strong healthcare companies, and today we are one of the largest and most active private equity investors in the sector globally. Integrating LSP within EQT’s Private Capital platform will bring compelling cross-pollination opportunities for our other strategies and complement our sector expertise – making EQT an even better and more innovative healthcare investor.”
Michael Bauer, Partner and Co-Head of EQT’s Global Healthcare sector team, said, “We are truly excited about the opportunity to join forces with LSP and form EQT Life Sciences. The EQT and LSP teams have complementary skill sets, and the combination will allow us to support healthcare companies and their management teams in a unique way. The life science industry is going through a phase of unprecedented innovation and, through the partnership with LSP, EQT will be able to participate in this growth opportunity and open up doors for attractive new investments in the space.”
Moelis & Company acted as financial adviser to LSP, Allen & Overy as legal adviser and Loyens & Loeff as tax adviser.
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