Genstar Capital said to eye over $5bn from potential Advarra sale, IPO

US private equity house Genstar Capital is reportedly hoping to reach a $5bn price tag for pharmaceuticals and regulatory consulting business Advarra through a potential sale.

The firm picked up Advarra from fellow buyout investor Linden Capital Partners in 2019, in a deal believed to value the business at about $1.3bn.

Genstar is considering either a sale or IPO of Advarra according to Bloomberg, which cited unnamed people it said were familiar with the matter.

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Advarra provides institutional review board, compliance and regulatory consulting services for clinical trial sponsors, CROs, hospital systems, academic medical centers and investigators.

The company’s main competitor, WCG, is also private equity owned, with Leonard Green and Partners buying into the Arsenal Capital-backced business in 2019.

Genstar raced to an $11.7bn close for its tenth fund last year – a huge increase on the already weighty $5.5bn Fund IX it closed in 2019.

Recent deals from the firm have included buying Arrowhead Engineered Products, a global provider of replacement parts for motorised vehicles and equipment, from The Riverside Company and Investcorp.

Source: Alt Assets

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