General Atlantic to invest $100m in India’s Rubicon Research

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Photographer: Krisztian Bocsi/Bloomberg

US-based growth equity investor General Atlantic is investing $100 million in Mumbai-based contract research and drug delivery company Rubicon Research Pvt. Ltd, the latter announced on Monday.

The announcement comes close on the heels of private equity firm Everstone revealing last week that it has sold its entire 70 per cent stake in Rubicon to a global private equity player. The firm generated 4.5x multiple and a 92 per cent IRR on its investment in a span of three years.

The development was reported by DEALSTREETASIA saying that General Atlantic is the buyer.

“General Atlantic is committing up to $100 million of primary capital and has acquired the stake held by Rubicon’s existing private equity shareholders. All other existing shareholders continue to maintain their shareholding in the company,” Rubicon said in a statement.

General Atlantic has now become a significant shareholder in the company, it added.

With the investment from General Atlantic, Rubicon intends to focus on accelerating the development and delivery of its proprietary drug delivery technologies, and increasing manufacturing footprint across the world, it said.

Aside from capital infusion, the private equity firm will also see its managing directors, Sandeep Naik and Shantanu Rastogi, join the board of Rubicon.

Besides, General Atlantic is also partnering Rubicon to launch a ‘Grow Together’ initiative through which the latter will back, with both capital and strategic support, seed and early-stage ventures founded by entrepreneurs and innovators in the traditional pharmaceutical domain as well as allied domains involving the application of emerging technologies like AI, continuous manufacturing and big data in the pharmaceutical industry, it said.

Rubicon currently has several commercial products in the global market and a pipeline of over 60 products in development or under review. It holds more than 50 issued patents in drug delivery technologies.

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 through Everstone Capital Partners III, included acquiring stakes from Kotak Private Equity and a private investor.

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, KIMS Hospitals, and Mu Sigma.

Last month, General Atlantic and Tencent had pumped in $31 million (Rs 215 crore) in Indian edtech 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.

Torreya Partners, a boutique healthcare investment bank, was the sole financial advisor to Rubicon for this transaction.

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