Apollo has agreed to take a minority equity stake in Sofinnova Partners, a European life sciences venture firm. According to the terms of the deal, Apollo will commit up to 1 billion euros to Sofinnova’s investment funds. The deal is expected to close in the second half of 2022.
Apollo (NYSE: APO) and Sofinnova Partners (“Sofinnova”), a leading European life sciences venture capital firm based in Paris, London, and Milan, today announced a long-term strategic and financial partnership. Under the agreement, Apollo will take a minority equity interest in Sofinnova and commit up to €1 billion of managed capital to its investment funds. This strategic partnership is poised to significantly accelerate Sofinnova’s growth. For Apollo, the investment will meaningfully increase its presence in life sciences and contribute to its growth ecosystem of partners that bring specialized knowledge and networks to its integrated platform.
Together, Sofinnova and Apollo will offer entrepreneurs a more comprehensive range of capital solutions to help bring new therapeutic and biotechnology-based solutions to the market. The commitment to invest up to €1 billion in Sofinnova vehicles, including future strategies the two firms may co-develop, will support companies at the forefront of life sciences innovation. Sofinnova will also gain access to Apollo’s global investment platform spanning credit, equities, real estate and other asset classes, as well as its far-reaching networks and capital markets expertise. Sofinnova will continue to operate from its Paris headquarters as an independent organization.
Sofinnova adds to Apollo’s ecosystem of investment managers focused on deep tech, fintech, digital assets and other specialized, higher growth categories where the firm does not have a historic footprint. By bringing together the broader Apollo platform with best-in-class partners, Apollo can maintain its disciplined investment approach while leveraging new sector expertise across its equity, hybrid and yield businesses, including in accretive new product development.
Antoine Papiernik, Chairman and Managing Partner of Sofinnova Partners, commented: “This strategic partnership will enable Sofinnova to double down on what it does best: support innovation and build companies through long-term relationships with visionary entrepreneurs. We are poised to accelerate our strategy, solidify our position as a leading global player, and enhance our product offering to our investors – setting the stage for new levels of growth and expansion.”
Mr. Papiernik noted that Sofinnova’s portfolio companies and the entire life sciences ecosystem stand to benefit from the greater scope and scale of capital solutions, deepened expertise and broader international footprint this partnership will enable. “We look forward to working with Apollo to build the next generation of game-changing startups, while positively impacting the future through investments in healthcare and sustainability,” he said.
Scott Kleinman, Co-President of Apollo, said, “The life sciences industry continues to grow and innovate, creating significant opportunities to fund and advance new therapeutics and technologies in pursuit of better health outcomes. Today, Apollo and its affiliates manage more than $5 billion across the healthcare and life sciences industries, and we view this space as a significant growth area for the firm. Sofinnova is a clear partner of choice, with specialized knowledge and a vast industry network that is accretive to our broader investing platform. Together we can leverage our complementary strengths and cultures to form a long-term, mutually beneficial relationship.”
The transaction is subject to customary closing conditions, including prior authorization by the French Autorité des Marchés Financiers, and is expected to close in the second half of 2022. Upon close, Neil Mehta, Partner and Global Head of Strategy at Apollo, will join Sofinnova’s Board of Directors.
Triago acted as a strategic advisor, and Dechert LLP as legal advisor to Sofinnova. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Gide Loyrette Nouel are serving as legal counsel to Apollo, and Guggenheim Partners as its financial advisor.
About Sofinnova Partners
Sofinnova Partners is a leading European venture capital firm in life sciences, specializing in healthcare and sustainability. Based in Paris, London and Milan, the firm brings together a team of professionals from all over the world with strong scientific, medical and business expertise. Sofinnova Partners is a hands-on company builder across the entire value chain of life sciences investments, from seed to later-stage. The firm actively partners with ambitious entrepreneurs as a lead or cornerstone investor to develop transformative innovations that have the potential to positively impact our collective future.
Founded in 1972, Sofinnova Partners is a deeply established venture capital firm in Europe, with 50 years of experience backing over 500 companies and creating market leaders around the globe. Today, Sofinnova Partners has over €2.5 billion under management. For more information, please visit: sofinnovapartners.com.
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of March 31, 2022, Apollo had approximately $513 billion of assets under management. To learn more, please visit www.apollo.com.