LSP: Record amount for fund and acquisition by EQT

10 Nov 2021

LSP: Record amount for fund and acquisition by EQT

LSP has raised a record 850 million euros for its seventh flagship fund. No European life sciences fund has ever achieved this before. LSP was also acquired by EQT and intends to continue its growth strategy under the umbrella of the Stockholm-based investment group.

LSP, a venture capital firm based in the Netherlands, says it acquired the capital in just seven months, significantly exceeding the fund's original target of $875 million (750 million euros). As the VC firm reported in early November, money for the new fund came from a variety of institutional investors, including pension funds, insurance companies, asset managers, government funds such as the EIF (European Investment Fund), and family offices. Many investors from previous funds are once again involved, and several pharmaceutical companies have also taken part.

As recently as 2020, LSP had already reported a (then) European record in raising finance for the LSP 6 fund, which was endowed with 550 million euros. The money has so far been used to invest in 17 companies. To date, LSP has raised three billion euros through various funds and invested in 150 companies since the VC firm's launch in 1988. LSP not only has an office in Amsterdam, but also in Munich and Boston.

Like its predecessors, the LSP 7 flagship fund is aimed at innovative drug developers in the early to late phase as well as medical technology companies that mainly come from Europe. LSP 7 can invest in between 15 to 20 portfolio companies. Three investments were made during the financial acquisition phase:

  • Egle Therapeutics from France, which focuses on the development of T-regulatory cell therapies for oncology and autoimmune diseases
  • A German company founded by LSP, but as yet "unnamed," that is developing innovative radiation therapeutics
  • Evommune from the U.S., which has a pipeline for therapies to treat chronic inflammation

In mid-November, it was also announced that LSP had been acquired by EQT, an investor group active primarily in Northern Europe and Asia. With EQT's broad investment and distribution expertise in the mature healthcare space, LSP intends to continue its growth of the past two decades and bring its expertise to attractive early-stage assets. Within EQT, which is headquartered in Stockholm, LSP is expected to continue to operate independently.