Health care costs per capita have doubled since the start of this century and the budgets of payers are under severe pressure, globally. Additionally, rapidly aging populations and the fast growing number of patients with chronic diseases are adding to a new challenge: how to continue providing better patient care without further increasing health care expenditure? Health care payers are increasingly focusing on rewarding value, particularly when it is reflected in improved quality of care that does not increase total system costs.
 

LSP recognized these changing dynamics in the sector and launched the € 112 million LSP Health Economics Fund in 2012, the first European private equity fund fully dedicated to investments in medical innovations that improve the quality of care and simultaneously reduce costs. Following the successful investment and exit strategy of its first health economics fund, LSP launched the LSP Health Economics Fund 2 (LSP HEF 2) in 2017, with € 280 million the largest fund in Europe dedicated to medical technology.
 

The investment strategy of LSP HEF 2 follows on from its first Health Economics Fund, to fund innovation that has the potential to both improve the quality of patient care while also keeping healthcare costs under control, thus helping to make healthcare systems sustainable and thereby addressing one of the most pressing issues in today’s society. 
 

LSP HEF 2 invests in private companies with innovative healthcare products in the field of medical devices, diagnostics and digital health. Our investments are predominantly located in Europe and the United States, with a preference for later stage companies with first revenues or products close to market introduction.

 

A prime example of our investment strategy is Neuravi. This company commercializes innovative devices for the treatment of stroke, vastly improving outcome for patients by increasing the number of patients that can return to a normal life after the stroke and reducing the number of patients that are severely disabled and thereby reducing costs to the system. Neuravi’s attractive product was also recognized by the medical device industry and lead to an acquisition of Neuravi by Johnson & Johnson in 2017, delivering a superior return to the investors. The Neuravi investment embodies everything that our investment strategy stands for: improved outcome for patients, reduced costs for the health care system and a highly attractive return for the investors in our fund.
 

People who have questions about LSP HEF 2 and would like to receive more information, are kindly asked to email Rudy Dekeyser at rdekeyser@lspvc.com or call +31 (0) 20 664 55 00.