EQT acquires life sciences venture capital firm LSP

Stockholm-headquartered investment firm EQT is acquiring Amsterdam-based LSP, a life sciences venture capital firm with approximately €2.2 billion of assets under management and a 34-strong team.

LSP invests in companies with a scientific and clinical rationale across several life sciences strategies. The company was founded in 1998 and has offices in Amsterdam, Munich, and Boston. Over the past two decades, LSP has invested in more than 150 life sciences companies. The entire LSP team, including all partners and employees, will join EQT.

LSP is expected to generate approximately €37 million in revenue and approximately €24 million in EBITDA this year. The proposed consideration is expected to equate to a mid-teens EBITDA multiple on a run-rate basis at completion. Upfront consideration amounts to €450 million (on a cash- and debt free basis) comprising 25% cash and 75% in EQT shares. In addition, a potential earn-out payment of €25 million will be made if certain short-term fundraising targets are met.

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.”

René Kuijten, managing partner at LSP, and incoming partner and head of EQT Life Sciences,commented: “’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.”

https://healthinvestor.co.uk/wp-content/uploads/2021/11/logo-social-1-2.png 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.” 

Date published: November 10, 2021

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