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.