Travers Smith LLP has advised long-standing client Medicxi, the leading European life sciences investment firm, on a ground-breaking €200 million structured secondary transaction, which is unprecedented in the biotechnology industry.
The interests in six clinical and preclinical stage companies held by Index Ventures Life VI, a dedicated life sciences fund advised by Medicxi, were acquired by a newly formed fund managed by Medicxi Secondary I LP (MS1). MS1 was anchored by leading secondary investor, Pantheon (London), with LGT Private Equity (Pfaeffikon, Switzerland) as co-lead investor.
MS1 acquired the portfolio at a premium to its net asset value and has committed to invest follow-on capital in each of the six portfolio companies to accelerate their clinical development plans through to the next stages of value creation. The investors in Index Ventures Life VI received proceeds from the sale of the portfolio to MS1 and were also offered the opportunity to re-invest their proceeds into MS1.
Richard Lee, Operating Partner and General Counsel at Medicxi, said "The Travers Smith team expertly guided us through this complex secondary transaction and their advice and judgment was crucial to the deal's execution. This was particularly impressive as the transaction was priced, negotiated and executed during lockdown."
This transaction further demonstrates Travers Smith's extensive expertise in the secondaries market – in 2020 Travers Smith have advised on £multi-billions of sophisticated secondary transactions across both GP-led and LP-led deals and across all capital structures, including continuation vehicles, LP tenders, portfolio sales, preferred equity financings and NAV-backed debt facilities. Travers Smith are innovatively shaping the market relating to private capital liquidity solutions.
The Travers Smith team was led by Funds Partner Sam Kay with support from Senior Associates Ed Ford and Katie McGarry and Associate Hannah MacDonald. The team also included Private Equity & Financial Sponsors Partner James Renahan, Private Equity Associates Oliver Murphy and Evander Obi, Head of Tax Emily Clark and Tax Senior Associate Sarah Moir-Porteous.