LSP has held the first and final closing at EUR280 million (USD 330 million) of its new medical technology fund, the LSP Health Economics Fund 2 (LSP HEF 2).
The fund was oversubscribed and exceeded both its target size and its original ‘hard cap’, making LSP HEF 2 the largest fund in Europe dedicated to medical technology. The investment strategy of LSP HEF 2 follows on from the first LSP Health Economics Fund, to fund innovation that has the potential to both improve the quality of patient care while also keeping healthcare costs under control, thus helping to make healthcare systems sustainable and thereby addressing one of the most pressing issues of today.
The new fund will invest in private companies with innovative healthcare products in the field of medical devices, diagnostics and digital health. The first LSP Health Economics Fund made ten investments in the same field. Recent and notable exits from this fund include Neuravi (acquired by Codman Neuro, part of Johnson & Johnson) and Rotation Medical (acquired by Smith & Nephew), earlier this year.
The investor base in LSP HEF 2 includes the European Investment Fund (EIF), health insurance companies, institutional investors, asset managers and family offices.
Commenting on the announcement, Dr Rudy Dekeyser, Managing Partner of LSP HEF 2, says: “The success of this fundraising is a strong validation of our strategy – investing in medical innovation to benefit both patients, and investors. As with the first LSP Health Economics Fund, we plan to invest in companies with products that can improve quality of care and lower healthcare spending. Our portfolio companies not only contribute to the sustainability of today’s healthcare systems, they also tend to be highly successful in the market, leading to fast adoption and making them attractive acquisition targets. Success stories like Neuravi and Rotation Medical from the first LSP Health Economics Fund are great examples of how our strategy can combine the best patient care with superior returns to our investors. We look forward to continuing this investment strategy with LSP HEF 2.”
“With this new and sizeable fund, we have now firmly established our health economics and medical technology strategy,” Dr René Kuijten, Managing Partner of LSP adds. “Together with our other fund strategies, LSP 1-5 investing mainly in drug development and LSP Public investing in public health care companies, we now cover the entire life sciences landscape as one of Europe’s largest investors in the sector.“
LSP HEF 2, focused on Europe and the US, will look to invest in around 15 private companies across the areas of medical devices, diagnostics and digital health. The products of these companies should be on the market or very close to market introduction and have the potential to lower costs for healthcare systems while also providing improved quality of care to patients.
