LSP's steady hand
How LSP has survived 25 years as European life sciences VC
When LSP-Life Sciences Partners launches a new healthcare venture fund next year it will stick to a strategy that has yielded 12 exits in the past 18 months - early stage, European drug development companies. The recent exits also highlight the firm's decision to focus on companies ripe for trade sales and to diversify its portfolio through a trio of complementary funds.
Since its beginnings in 1988, LSP has raised a total of $1 billion in eight funds and has invested in 75 private companies. There have been 18 IPOs and 25 trade sales across seven venture funds.
Over the years, the firm has added three complementary funds, with one each focused on agbio, public companies and health economics plays. The latter are companies with products that produce demonstrable savings to the healthcare system.
According to LSP's Joachim Rothe, maintaining a consistent team and strategy has helped the firm keep its gross internal rate of return (IRR) above 25% since inception across the first six of LSP's private company funds. The exception is the