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Atlantic Streets’ Lab Logistics preps for sale, Cambridge Associates’ Andrea Auerbach on how and why GPs are holding assets longer

Atlantic Street Capital’s Lab Logistics gets ready to go on the block.

Happy Friday, everybody!

Today we’ve got news of healthcare transportation and logistics company coming to market, plus a Q&A on the “long hold” trend transpiring as more GPs look to hang on to their most prized assets longer.

The pandemic has cast a major light on the importance of the healthcare supply chain, and turns out, many PE-backed businesses play across the continuum of different processes – including the distribution and delivery of therapies and medical supplies.

One company doing just that is preparing for a sale in Q2. Atlantic Street Capital’s Lab Logistics, an outsourced medical logistics and courier service provider has hired Lincoln International for an upcoming process, according to three sources with knowledge of the firm’s plans. Lab Logistics provides courier services including the handling of specimen and supplies to more than 300 medical laboratories and hospitals in the US., along with courier tracking technology.

The upcoming process also comes at a time in which healthcare organizations, pressured through covid, remain eager to drive cost savings across the supply chain. Lab Logistics boasts that it consistently saves their clients 18 to 40 percent in courier costs.

The company has also been involved with the roll out and distribution of covid-19 vaccines, according to a local Greenwich Time news report.

Read my full report on PE Hub.

Can’t let go: More than ever before, GPs are finding ways to hold assets longer than allowed under traditional private equity fund structures. Buyouts recently chatted with Andrea Auerbach, global private equity head at Cambridge Associates, on this emerging trend.

Here’s a preview of Chris Witkowsky’s interview with Andrea:

How are GPs accomplishing this outside traditional PE fund structures?

“One way that can be done is by getting amendments and approvals to sell from one fund to another fund, keeping it in the family, so to speak. That’s cross-fund investing. That trend will continue and it’s something that, as investors, you have to think about the alignment: are valuations being done on the up-and-up, independently? What’s happening with the carry associated with that investment? The devil is in the details and so it’s something an investor needs to understand. Obviously, the GP knows the company better than anyone, so provided valuations are done at an arm’s length basis and alignment in terms of carry is appropriate, LPs can get comfortable with it.”

Read Chris’s full Q&A with Andrea and more on the long hold trend.

That’s it for me! Enjoy the long weekend (if you’ve got one), and as always, write to me at springle@buyoutsinsider.com with any tips, feedback or just to say hel