Hot Life Science Investor Mandate 1: PE Provides Buyouts, Majority Recaps, Family Successions

29 Aug

A private equity group based in the Eastern US, which manages SBIC (small business investment company) funds, has around $200 million in total assets under management. They are currently deploying capital from their second fund, which closed in 2012. The group is interested in sourcing new firms in the life sciences space, typically making equity investments ranging from $1-10 million.

The most important criteria for potential investments for the PE group is the company’s structure. The group provides company owners capital to facilitate majority recapitalizations, majority management buyouts, as well as family successions. Accordingly, they would be especially interested in a firm where a manager is seeking to buyout the company’s owner, a business whose owner is looking to retire, or company owner who is looking for a strategic financial partner. The firm is thus most interested in management teams who are looking to retain or acquire a significant equity stake in their company.

The PE is seeking firms that have at least $1-10 million in EBITDA, and $10-100 million in revenue. The firm is most interested in the suppliers and engineering space. However, they are very opportunistic in terms of sector, and would consider companies operating within any subsector of the healthcare suppliers and engineering space.

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