LSP said Tuesday that it has raised $100 million in the first close of its new fund LSP 5. The target is $150 million. Its LPs include unnamed institutional and private investors from Europe and the U.S. The pool will focus on emerging private medical firms.
September 30, 2014
LSP (Life Sciences Partners) today announced that it has raised EUR 80 mln (USD 100 mln) for its new fund LSP 5. This fund will continue LSP’s proven and successful strategy of investing in emerging private companies with innovative medicines and medical technologies. Investors stated that they selected LSP because of its impact on healthcare and its consistently strong financial performance.
As a dedicated and entrepreneurial investor, LSP has been successful in identifying and supporting the most promising inventors and inventions across Europe, and in building companies that make a difference. A prime example of LSP’s impact on healthcare is Okairos, a company with a successful vaccination platform that was acquired in 2013 by GSK for EUR 260 mln. In its rich pipeline, Okairos has a vaccine which is fast-tracked to attack the current Ebola outbreak in Africa [FierceBiotech]. LSP was Okairos’ lead founding investor in 2007, and instrumental in the company’s further development and sale. LSP has been of similar importance in the development of companies such as Affimed, Sapiens, arGEN-X, Activaero, Celladon, Prosensa, BMEYE, Movetis, U3Pharma, KuDOS, Crucell and Qiagen. LSP’s focus is on high unmet medical needs, either for large indications like cancer or cardiovascular diseases that cause a large socioeconomic burden or for rare diseases where currently no treatment exists. LSP invests in all stages of development, from early pre-clinical to later stage. LSP’s companies brought 35 drugs and technologies to the market and to patients, and currently have 75 products in clinical testing. This product portfolio compares well to that of a sizeable pharma company.
Apart from its significant contribution to healthcare innovation, LSP has demonstrated a strong and steady financial performance over the past 25 years with a 25% average annual return on realizations (IRR), which is exceptional in this industry. In total LSP has invested in more than 75 companies, and has exited 55 of them. LSP’s recent past has shown an acceleration in exits (15 in the last 22 months), which demonstrates the firm’s ability to select those inventions that can complement the pipelines of cash-rich pharma companies, as described in a recent BioCentury feature article [LSP’s steady hand].
LSP 5 will be invested in 10-15 companies selected and supported by LSP’s partners Martijn Kleijwegt, René Kuijten, Joachim Rothe, Joerg Neermann, Fouad Azzam and John de Koning. This team has worked together for a decade and combines entrepreneurial and financial skills with a strong background in biosciences and medicine. The team operates from its offices in Amsterdam, Munich and Boston
LSP 5 is backed by both existing and new institutional and private investors from Europe and the United States. Most notably, a large pharma company invested in both LSP 4 and LSP 5, confirming LSP’s leading position in the field as well as signalling its interest in European life sciences companies. The target fund size for LSP 5 is EUR 150 mln
LSP 5 is part of the LSP Group. Established in 1987 as a pioneer in life sciences venture capital, the LSP Group has now grown to become one of Europe’s premier life sciences investors. The Group has raised over EUR 750 mln (USD 1 bln) since inception and spans the entire life science domain, including drug development, diagnostics, medical devices, agriculture, food and industrial biotech. LSP invests in private companies, but also in small cap public companies through its Euronext-listed LSP Life Sciences Fund (Euronext: LSP:NA).