Eurazeo is to raise its stake in Kurma Partners, a French venture capital firm specialising in biotechnology and medical innovation, to 70.6 per cent.
This transaction coincides with Kurma’s launch of a third investment strategy, Growth Opportunity, to support more mature companies, with late stage clinical or early commercial stage asset, in which Eurazeo will be a leading investor.
With nearly EUR500 million in assets under management and more than 45 investments made since its launch in 2009, Kurma Partners has built up strong and widely recognised expertise in the financing of innovation in the health care sector and in biotechnology, from pre-seed to growth capital, through its Kurma Biofund and Kurma Diagnostics funds. Its team of 13 investors is managed by five partners with more than 15 years of experience as investors in the health care sector.
Along with this increased stake, Eurazeo is set to become a leading investor in the funds managed by Kurma Partners, particularly in support of the launch of its new crossover investment strategy to accompany the most promising European companies, with products having reached more advanced stages of development. To accelerate Kurma’s growth trajectory, Eurazeo plans to commit nearly EUR100 million to its funds. Eurazeo will also be providing operational support, together with access to its international network, to help Kurma Partners become a European leader in the area of Life Sciences innovation. Kurma Partners will retain its management independence and its existing team.
Following the decision of the French Insurance Federation (FFA) and Caisse des Dépôts to entrust Eurazeo with the management of the Nov Santé fund, this plan to increase the Group’s stake in Kurma Partners confirms Eurazeo’s position as a leading investor in health care. Eurazeo will draw on its extensive knowledge of this sector to boost growth for companies.
With 12 per cent of its private equity assets under management invested in the health care sector, Eurazeo is pursuing reindustrialisation, reshoring, R&D and innovation, prevention development, a major contributor to the development of health care systems in France and Europe. The Group brings all of its skills, expertise and enthusiasm to the financing of start-ups, SMEs and mid-caps telemedicine or digitalisation projects.
The transaction is expected to be finalised by the end of 2021 and remains subject to the fulfillment of certain conditions precedent, including approval from the Autorité des Marchés Financiers (AMF, the French securities regulator).
Virginie Morgon, Chief Executive Officer of Eurazeo, says: “With this strategic acquisition, Eurazeo reaffirms its ambition to become one of the European leaders in the financing of health care companies at all growth stages. Eurazeo is proud to be accompanying the teams at Kurma Partners, whose strong track record attests to their deep level of expertise and knowledge, positioning the firm as one of the most credible players to support the development of the most promising biotech companies in Europe.”
Rémi Droller, Thierry Laugel and Vanessa Malier, Managing Partners of Kurma Partners, adds: “We are delighted to welcome Eurazeo’s support at this key stage, which will allow us to ramp up our growth by drawing on the Group’s industrial expertise, operational capacities, and international networks.”
