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The Wire

Nov. 10, 2021

EQT buys life sciences-focused LSP to enhance healthcare position, TA joins Thoma Bravo as investor in Riskonnect 

 

Morning!

 

One of the most active global investors in healthcare is looking to capture even more of the opportunity set out there. EQT is acquiring LSP, a European venture capital firm it believes will complement its existing knowledge base within life sciences and expand the firm’s ability to support companies at the forefront of innovation in the healthcare sector. The upfront consideration is EUR 450 million (~$520 million) on a cash- and debt free basis, comprising 25 percent cash and 75 percent new EQT AB publicly traded shares, with a potential additional earnout payment of EUR 25 million.  

 

The strategic rationale? EQT points to scalability benefits and a broadened investable service for both parties, as well as an aligned values-based culture. Read PE Hub's brief on the deal.

 

EQT has maintained a consistent healthcare strategy, putting capital to work across life science tools, pharma services, life sciences and healthcare IT. As of April, approximately €39 billion ($47 billion) of enterprise value had been invested in healthcare private equity across 20 PE deals since 2016, PE Hub wrote, with healthcare accounting for 38 percent of all capital deployed in EQT VI. 

 

Elsewhere, TA Associates is making a growth investment in Riskonnect, with current majority owner Thoma Bravo poised to stay on as an investor in the integrated risk management software solution provider. Read PE Hub’s brief on the deal.

 

That’s it for me! Have a great week ahead, hubsters! As always, write to me at [email protected] with any tips, gossip or feedback. 

 

Read the full wire commentary on PE Hub...

 

Also of note (may require subscriptions)

Retail investors: What used to be elusive to the Main Street investor is now becoming commonplace, as more and more private equity firms are making plays to attract retail investors. Hamilton Lane is among those targeting the niche retail market. In fact, the $757 billion alternative assets manager was a first mover, Steve Brennan, Hamilton Lane’s head of private wealth solutions, told Buyouts. Read more here. 

 

GP-led: The way Lexington Partners selects which GP-led secondaries transactions to invest in has been disclosed in a document seen by Secondaries Investor. The New York-headquartered firm, which last week said it had agreed to be acquired by asset management giant Franklin Templeton, evaluates potential deals by “deal fundamentals” and “process dynamics”, according to the document, dated October 2021, which details the firm’s investment strategy, firm make-up and selected transactions. Read more on Secondaries Investor.