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

EQT doubles down on healthcare while TA invests 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.

LSP’s 34 team members — sitting across its offices in Amsterdam, Munich, and Boston — will join EQT. The Amsterdam-based firm brings a deep scientific knowledge base, having over the past two decades invested in over 150 life sciences companies.

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.

It has also had quite a run in the US. In December 2020, the firm executed its first-ever US initial public offering for Certara, whose biosimulation software fuels drug development.  Other notable US-based investments include Waystar and Aldevron.

Partnership: 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.

Indicating its belief in the continued growth of the business, Thoma first invested in Riskonnect in June 2017. The company under Thoma has completed four acquisitions, with its deal for Marsh ClearSight in late 2018 positioning the combination as the most comprehensive, global suite on the market at the time. Revenue more than quadrupled under Thoma since its initial investment, according to the announcement.

Riskonnect, whose technology empowers organizations with the ability to anticipate, manage, and respond in real-time to strategic and operational risks, has over 950 customers globally and more than 550 team members around the world.

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 springle@buyoutsinsider.com with any tips, gossip or feedback.