LSP holds first close on third fund

Fund

Life Sciences Partners (LSP) has held a first close of its third fund LSP III on E65m, leaving a total of E55m to be raised in order to reach its target of E120m. The fund has a life span of 10 years, with an investment period of five years. Minimum subscriptions are E5m, and the fund has a floor of E65m and cap of E150m. The GPs have made a contribution to the vehicle. 70% of the fund will be used for new investment and the remaining 30% is allocated for follow-on rounds. The remaining terms and conditions are considered to be the standard for venture capital funds. LSP I, established in 1998, has E40m under management, whilst LSP II raised the bar with E113m. The E120m target of this third fund highlights the confidence LSP has in its diversified portfolio strategy for attracting venture fund investors.

Investors

All major investors in the previous LSP funds committed to LSP III, including the European Investment Fund, Residex, DSM (page 7), ING, Achmea and the GP (who contributed 1.25%). The fund also attracted new investors from Germany, Switzerland, Luxembourg and Finland, including SwissRe, Finnish Industry Investment, Proventure, BGL Investment Partners and a German family office. Martijn Kleijwegt believes that this interest, coupled with the investments already made by the fund (see below), makes the team confident of attracting more investors following this close.

Investments

The fund is a focused venture capital vehicle dedicated to life science investments in Europe, with particular interest in the Benelux and the German speaking countries. It will invest in between 15-20 companies a year and has a five-year investment horizon, consistent with the strategy of previous funds. The most it will invest in a single transaction is E8m, taking an equity stake of between 5-45%. LSP III already has four later stage investments in the portfolio: Netherlands-based Octoplus (page 12, February 2005), Jerini and Idea AG, both based in Germany, and the Denmark-based Zealand Pharma.

People

Martijn Kleijwegt manages the team responsible for the fund along with the four general partners, René Kuijten, Tom Schwarz, Mark Wegter and Joachim Rothe. Life Sciences Partners plans to recruit an investment manager for the German office shortly.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Benelux