LSP, a European life sciences investment group, just closed a $330 million medtech fund, dubbed the LSP Health Economics Fund 2 (LSP HEF 2).
The fund was oversubscribed and exceeded both its target size and its original cap, making it the largest fund in Europe dedicated to medical technology, the firm noted. The investment strategy of LSP HEF 2 will follow that of the first LSP HEF, which is to fund innovation that has the potential to improve the quality of patient care while also keeping healthcare costs under control.
LSP said the new fund will invest in around 15 private U.S. and European companies with innovative healthcare products in the field of medical devices, diagnostics, and digital health.
The firm said these companies should have products that are either on the market or very close to being introduced to the market, and they should have the potential to lower costs while improving quality of care.
The first LSP Health Economics Fund made 10 investments in medtech. Recent exits from the fund include Neuravi, which was acquired by Codman Neuro, part of Johnson & Johnson, and Rotation Medical, which was acquired this year by Smith & Nephew.