Carlyle acquires life sciences investor Abingworth

Rachel Lewis
12 April 2022

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Private equity firm Carlyle has acquired UK-based life sciences investment firm Abingworth as it jumps on a trend of asset managers driving towards specialisation, particularly in healthcare.

Since its inception, Abingworth has deployed USD 3bn across 14 specialised life sciences funds into 179 companies. It has offices in London, Boston and San Francisco.

Carlyle and Abingworth will together form Launch Therapeutics (Launch Tx) that will help fund and develop late-stage clinical assets to bring products to market faster.

The platform will be led by Anshul Thakral, former chief commercial officer of PPD, a contract research organisation.

Abingworth's latest funds include Bioventures VIII, which closed in October 2019 at USD 465m, and Clinical Co-Development Fund 2, which closed at USD 582m in May 2021.

The GP earlier said that Bioventures VIII targets company creation and development-stage opportunities while the co-development fund finances late-stage opportunities to bring medicines to market in a reduced time frame.

Out of its 179 companies, 73 have gone public and 46 have been bought out. The portfolio has also delivered 26 new medicines approved by the FDA in the past nine years.

Abingworth had revenue of GBP 14.5m in the year to June 2021, according to its filed accounts.

Carlyle said that the transaction would enable it to operate across the full risk spectrum of life sciences and healthcare investing, from venture capital to buyouts.

The transaction is expected to close in 2022.

The GP is the latest to use M&A to drive towards the specialisation of assets managed. Just last year, EQT acquired LSP, which at the time had raised EUR 850m for LSP 7, for EUR 450m to form EQT Life Sciences.

LSP will generate revenues of around EUR 37m and EBITDA of around EUR 24m (excluding carried interest) in 2021.

Healthcare specialist funds are already on track for a record year of fundraising as the pandemic drew attention to acute investment needs and LPs look at the sector for ESG-friendly commitments, as reported by Unquote.