Hot Life Science Investor Mandate 3: Private Equity Fund Targets Contract Organizations for 2013 – March 14, 2013

12 Mar

A private equity fund based in the Eastern US has around $200 million in total assets under management, has raised three funds, and is currently allocating capital from its third fund to new investment opportunities. They are currently looking for new opportunities in the life science space, and anticipate on investing in 4-6 firms in 2013. The firm typically writes equity checks ranging from $15-50 million.

The PE fund is currently most interested in firms within the biotech R&D space. Specifically, they are looking for contract research organizations (CROs) and contract manufacturing organizations (CMOs). The firm also invests in the medical device space, but prefers firms that are manufacturing low-technology products. The firm is agnostic in terms of where the firm is based, however the majority of the firm’s current portfolio companies are based in the US.

The firm engages in leveraged buyouts, recapitalizations, and growth financing. Typically, they work with companies whose enterprise value ranges from $25 to $300 million, and are looking for firms that have at least $5 million in EBITDA. However, the PEG has been involved in co-investment tractions with enterprise values exceeding $1 billion. With that being said, they will only consider medical device companies that have products that are on the market, and would not consider a pre-revenue medtech firm. The firm invests in both public and private companies.

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