EQT is to acquire LSP (Life Sciences Partners), a European life sciences venture capital firm with approximately EUR2.2 billion of assets under management (AUM) and a team of 34 professionals.
LSP, headquartered in Amsterdam, the Netherlands, is a venture capital firm that invests in innovative companies with strong scientific and clinical rationale across several life sciences strategies. The Company was founded in 1998 and today is one of Europe’s largest and most experienced life sciences investment firms. LSP employs 34 professionals across its offices in Amsterdam, Munich, and Boston.
Over the past two decades, LSP has invested in over 150 life sciences companies, generated strong returns, and built a top-performing life sciences franchise. As part of EQT, the LSP team will be able to continue to operate in the same successful manner as they have been operating over the past two decades. The entire LSP team, including all partners and employees, will join EQT.
LSP is expected to generate approximately EUR37 million in revenues and approximately EUR24 million in EBITDA (excluding carried interest) during 2021. The proposed consideration is expected to equate to a mid-teens EBITDA multiple on a run-rate basis at completion.
Per Franzén, Partner and Head of EQT Private Capital, says: “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, says: “’Europe has many attractive life sciences companies. Together with EQT, one of the largest European private equity firms with more than EUR70 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, adds: “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.”
Michael Bauer, Partner and Co-Head of EQT’s Global Healthcare sector team, says: “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.”