Apax to make 4x-plus on ECI, Warburg joins Great Hill as investor in Quantum Health, GTCR takes two healthcare companies public, Warburg’s Hygiena hits the market

Warburg Pincus is the winning bidder for Great Hill Partner’s Quantum Health and a Warburg and GTCR portfolio company Sotera Health goes public.

Happy Friday!

The “long-hold”: For many prized portfolio businesses, selling private equity investors are choosing to stay on as minority shareholders (or in some cases through 50-50 ownership structures). A recurring theme in this environment, GPs are looking to capture additional upside in businesses they really believe in, and in some cases, it adds a degree of comfort for the buyer due to the large transaction size.

Today we’ve got two such examples.

To start, Apax Partners is poised to make more than 4x its investment on its partial sale of ECI Software Solutions to Leonard Green & Partners, a source familiar with the transaction told PE Hub.

Apax, which owned about 75 percent of the ERP software company prior to the stake sale and first invested in the business in June 2017, will retain a minority position. Read Milana’s story.

Elsewhere, Warburg Pincus this morning emerged as the winning party in the process for Great Hill Partner’s Quantum Health, a healthcare navigation and care coordination business. Warburg said the firms will each hold “significant” investments following the deal, but perhaps more telling, each will hold two board seats at the business – implying an equal governance of structure for Quantum. Read my full report.

New opportunity: In other Warburg portfolio activity, the firm has launched a sale process for Hygiena, a global provider of food safety and life science testing, according to three sources familiar with the matter. The business has performed well through covid, I’m told, as the value of environmental sanitization and disinfection services top priority these days. Read more.

IPO, the old-school way: Another player in the business of sanitization is in the spotlight today.

Sotera Health, backed by GTCR and Warburg, will begin trading on the public markets today after pricing at the top of its range, raising $1.1 billion. The lab services business sterilizes medical equipment, provides Cobalt-60 and gamma irradiators used in gamma sterilization, as well as offers lab testing services.

That’s not the only GTCR-backed healthcare business to watch today. Maravai LifeSciences Holdings also priced its shares last night at the top of its range, raising $1.62 billion. Notably, Maravai’s mRNA product is used by COVID-19 vaccine makers including Pfizer and BioNTech SE.

That’s it for me today. As always, write to me at springle@buyoutsinsider.com with any tips, feedback or just to say hello. Have a great weekend!