AXA IM Alts has raised €1.9 billion of equity during the last seven months in order to accelerate investments into the life sciences sector. The fund raising was oversubscribed and equity originates from North America, Asia and Europe.
AXA IM Alts’ investments into the life science sector are managed by its real assets platform. The capital raised will primarily be invested through Kadans Science Partner which AXA IM Alts acquired last year. Kadans is a developer, owner and operator of European science parks and lab offices and has a portfolio comprising 22 assets totalling about 167,000 sq m in the Netherlands, UK and Germany. It also has eight developments which will provide 120,000 sq m of new space during the next three years. The new funds will enable Kadans to do more deals while developing schemes already in hand.
Since Axa acquired Kadans it has made a number of acquisitions in the UK and the Netherlands, including Sherard Building in Oxford and Rotterdam Science Tower.
Axa commented that the life sciences sector is already well established in the US, but is an emerging,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 and companies are fundamentally considering how they organise themselves.
“Our investment into Kadans and the life sciences sector also dovetails with two of our broader investment themes,” said Isabelle Scemama, global head of AXA IM Alts & CEO of AXA IM – Real Assets. “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.”