Largest fund in Europe dedicated to medical technology
Significant fundraise reflects successful investment strategy to achieve better care at lower costs
Amsterdam, 12 December 2017 – LSP, the European life sciences investment group, today announced the successful first and final closing at EUR280 million (USD330 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 said: “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 sizable fund, we have now firmly established our health economics and medical technology strategy,”Dr René Kuijten, Managing Partner of LSP added. “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.
For further information, please contact:
Rudy Dekeyser, PhD and Anne Portwich, PhD
Optimum Strategic Communications
Supriya Mathur, Mary Clark, Hollie Vile
Tel: +44 (0) 203 714 1787
Notes to Editors:
LSP (Life Sciences Partners) is an independent European investment firm, providing financing for private and public life sciences companies. LSP’s mission is to connect investors to inventors, focusing on unmet medical needs. Since the late 1980s, LSP’s management has invested in about 100 innovative enterprises, many of which have grown to become leaders of the global life sciences industry. With over EUR1.3 billion (USD1.5 billion) of investment capital raised to date and offices in Amsterdam, Munich and Boston, LSP is one of Europe’s leading life sciences investors. LSP also invests in public companies through its Euronext-listed LSP Life Sciences Fund (Bloomberg: LSP NA). For more information, please visit www.lspvc.com.
About LSP HEF 2
Launched in 2017, LSP HEF 2 has a fund volume of EUR280 million and targets investment opportunities in private medical technology companies offering products that can both improve the quality of patient care and lower healthcare spending. The fund will invest in around 15 companies across the areas of medical devices, diagnostics and digital health. The fund will be managed by LSP partners Rudy Dekeyser, Anne Portwich, Fouad Azzam and Clemens van Blitterswijk who have many years of relevant experience in this field and already successfully invested the first LSP Health Economics Fund together.
The European Investment Fund (EIF) acted as cornerstone investor committing to the Fund through (i) the EIB-EIF SME Funds Facility, funded by the European Investment Bank (EIB) with a guarantee from the European Union under the European Fund for Strategic Investments (EFSI), (ii) the EIF’s European Recovery Programme (ERP), (iii) the Dutch Venture Initiative II (DVI-II) as well as (iv) the Risk Capital Resources (RCR) mandate, funded by the EIB.
The European Investment Fund (EIF) is part of the EIB Group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.« back to overview