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Lexington backs Rosetta’s direct pharma deal

The life sciences-focused direct secondaries firm has purchased 20 assets thought to be worth $5-10m each with the backing of Lexington Partners.

Lexington Partners has again helped fund the activities of a small, specialised direct secondaries firm, this time partnering on the purchase of a pharmaceutical portfolio with Rosetta Capital. 

“It has been a collaborative process in which we have worked closely with the corporate venture team and Lexington Partners,” Jonathan Hepple, partner at Rosetta, said in a statement. Rosetta focuses on healthcare and life sciences sectors in Europe and North America.

New York-based Landmark provided “backing” for the deal of 20 assets, according to the statement, which provided no further financial details. Rosetta’s Fund V was raised specifically to fund the acquisition from a major pharmaceutical company, a source said. The identity of the seller was not disclosed.

Rosetta refused to comment on the size of the deal but one source who viewed the portfolio before the sale put the value of the portfolio between $100 million and $200 million. Another source with knowledge of the deal said the 20 stakes were in venture capital start-ups worth roughly between $5 million and $10 million each.

Lexington declined to comment. Earlier this month, the firm backed another direct secondaries firm, anchoring UK-based tech specialist Azini Capital’s latest fund.

Rosetta was advised by Kirkland & Ellis and Bluetower Associates, while Lexington was advised by Macfarlanes.

In April 2013, Rosetta held a €30 million final close on its Fund IV, according to PEI data.