Hot Life Science Investor Mandate 1: Global PE Looking to Invest up to $80m in CROs, CMOs, Biotech R&D – May 9, 2013

8 May

A private equity group with offices worldwide has approximately $20 billion in total assets, and has raised more than 15 funds to date. Currently, around 15% of the firm’s portfolio is dedicated to the healthcare/life sciences space, and they are currently looking for new opportunities for their most recent fund, which closed at more than $10 billion. The firm is unsure of how many investments it will make within the next 6-9 months, however, they would allocate to a company within the next few quarters if a compelling opportunity were identified. The firm typically allocates between $20-80 million per company.

The PE is looking for companies in the biotech R&D services, therapeutics and diagnostics, as well as medtech space, and are most interested in contract research organizations (CROs), contract manufacturing organizations (CMOs), diagnostics, and medical devices. Because the firm has a global footprint, they invest in companies all over the world.

This particular PE only engages in growth and buyout transactions. They typically look for companies that have between $50-250 in EBITDA, and an enterprise value of at least $250 million. With that being said, the PE will only consider companies that are cash flow positive with a product currently on the market.

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