India: General Atlantic buys Everstone’s 70% stake in Rubicon Research

Private equity firm Everstone is selling its entire 70 per cent stake in Mumbai-based contract research and drug delivery company Rubicon Research Pvt. Ltd to a global private equity player, it announced on Monday.

Though Everstone did not disclose the buyer’s name, a source familiar with the development said US-based growth equity investor General Atlantic is buying its stake in Rubicon.

In a statement, however, Everstone said that it has generated 4.5x multiple and a 92 per cent IRR on its investment in a span of three years.

Everstone’s Singapore fund had bought a 70 per cent stake in Rubicon for a total outlay of Rs 220 crore ($33 million) in October 2016. The investment, which was made from Everstone Capital Partners III, included acquiring stakes from Kotak Private Equity and a private investor.

Everstone Capital Partners III had raised $730 million in 2015.

“The Everstone team worked closely with the promoters on their overall strategy, helping them on molecule identification and scaling their manufacturing network. Everstone, through its global network, also brought in external expertise like David Silver, a US pharma industry veteran, to help the Company in market feasibility studies,” it said in a statement.

Founded by Pratibha Pilgaonkar, Rubicon is a specialty generics pharmaceutical product development company engaged in research, development and manufacturing of branded and specialty generic products, and OTC products. The company is said to have grown its profits by over 5x in a short span of three years.

The deal marks yet another successful exit for Everstone managed funds in the healthcare space after its exit from Global Hospitals – sold to IHH in 2015 generating over 3x returns. Its others investments include domestic pharma distribution platform, Ascent Health, Southeast Asia-based diagnostic device platform Everlife, and OmniActive, a nutraceutical ingredient business founded by Sanjay Mariwala.

Everstone, which is focused on India and Southeast Asia, manages assets in excess of $5 billion across private equity, real estate, green infrastructure and venture capital. It has offices in Singapore, India (Mumbai, Delhi, Bangalore), London,
New York and Mauritius.

Meanwhile, General Atlantic was among the first global funds to set up a base in India. It is also invested in firms such as Anita Dongre, PNB Housing, IIFL Wealth, Byju’s, and Mu Sigma.

Last month, General Atlantic along with China’s Tencent had pumped in $31 million (Rs 215 crore) in Indian ed-tech startup Byju’s. The private equity firm along with Varde Partners is also buying a 13 per cent stake in Indian mortgage lender PNB Housing Finance Ltd for Rs1,851 crore, or $268 million.

Also Read:

India: General Atlantic, Varde to buy 13% stake in PNB Housing for $268m

General Atlantic, Tencent inject $31m more in Indian ed-tech firm Byju’s

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.