AXA IM Alts, a global leader in alternative investments with c. €162 billion of assets under management(1), has raised €1.9 billion of equity to accelerate investments into the Life Sciences sector.
The capital was raised over the last seven months, with commitments to a significantly oversubscribed fund raise from a range of clients from North America, Asia, and Europe. AXA IM Alts’ investments into the life science sector on behalf of clients are managed by its Real Assets platform, the leading(2) real estate portfolio and asset manager in Europe.
Already well established in the U.S., Life Sciences is an emerging but high potential asset class in Europe which is supported by a number of economic, demographic, and technological changes, notably as it relates to healthcare. The sector is benefitting from a significant growth in available public and private funding. Companies in the sector are not just demanding additional space to accommodate their growth but are fundamentally considering how they organize themselves and recognizing the value of being part of a relevant ecosystem.
The capital raised will primarily be invested through Kadans Science Partner which AXA IM Alts completed the acquisition of in December last year. It will enable Kadans to execute new acquisition opportunities and continue to build out its existing development opportunities with a view to consolidating its market-leading position in Europe.
Kadans is a fully integrated developer, owner, and operator of European science parks and lab offices and is unique in its focus and scale within the European Life Sciences sector. Its portfolio comprises c. 167,000 sqm of operating space across 22 assets in key research locations in the Netherlands, UK, and Germany, as well as eight developments which are due to deliver c.120,000 sqm of new space over the next three years.
The expansion of the Kadans platform, primarily through developing out its existing pipeline and acquiring new opportunities across Europe, is a strategic objective for AXA IM Alts. Since acquisition, Kadans has already completed a number of acquisitions in the U.K. and the Netherlands, including Sherard Building in Oxford and Rotterdam Science Tower, while working on a pipeline of opportunities, including development projects.
Isabelle Scemama, Global Head of AXA IM Alts & CEO of AXA IM – Real Assets, commented: “The success of this capital raise underlines our ability to present our clients with opportunities to invest at scale in our key conviction asset classes, such as life sciences, which offer sustainable and growing income returns over the long term. Our investment into Kadans and the life sciences sector also dovetails with two of our broader investment themes. Firstly of putting capital to work into opportunities which have strong ESG credentials and make a positive contribution to society and, secondly, of coupling long-term investment capital with operational platforms and highly ambitious management teams wishing to operate without the constraint of short-term investment horizons.”