EQT to expand venture capital business with LSP acquisition

EQT Group agreed to acquire Amsterdam-based venture capital firm LSP in a €450 million ($520 million) deal, a spokesman confirmed.

The deal, which is expected to close in the first quarter of 2022 subject to customary and regulatory approvals, will boost Stockholm-based EQT’s venture capital assets under management by adding €2.2 billion.

The deal is financed 25% from cash and 75% from new shares of EQT.

The transaction will boost EQT’s offerings to include a focus on social impact in the health-care industry and companies that can advance life science research through technology.

LSP’s broad life sciences network is complementary to EQT’s global health-care advisory network, EQT said in a news release Wednesday. As part of EQT, LSP will benefit from EQT’s fundraising, digital and sustainability capabilities.

LSP’s 34 employees will join EQT when the deal closes.

“Integrating LSP within EQT’s private capital platform will bring compelling cross-pollination opportunities for our other strategies and complement our sector expertise — making EQT an even better and more innovative health-care investor,” said Per Franzen, partner and head of EQT private capital, in the news release.

Rene Kuijten, managing partner at LSP, who will join as head of EQT life sciences when the deal closes, said in the release that LSP will be able select, develop and finance opportunities even better than before.

“Given the strong cultural fit and the complementarity between our organizations, we are convinced that joining forces is a win-win for our investors, our portfolio companies, our LSP colleagues, and the broader European life sciences ecosystem,” Mr. Kuijten added.