Charme to fetch more than 4x return on Igenomix via sale to EQT

  • Genetic-testing services in 13 countries; U.S. largest market
  • Partial exit is first for Charme III
  • Igenomix tests grew at ~44 pct CAGR during Charme’s hold

Charme Capital Partners is poised to make more than 4x its money through its majority stake sale of Igenomix, according to a source familiar with the matter.

The buyer is EQT Partners, which on Thursday announced an agreement to acquire the Valencia, Spain, provider of women’s health and reproductive services. Sweden’s EQT is investing out of Fund VIII, which closed at 10.75 billion euros in February 2018.

Charme, a pan-European firm with locations in London, Milan and Madrid, will reinvest in Igenomix alongside management.

The partial exit marks the mid-market buyout firm’s first from Charme III, the source said, having made its initial investment in Igenomix in 2016. Charme took an initial equity stake of 75 percent, an announcement at the time said.

Igenomix, which will continue to be led by CEO David Jimenez, offers technology-driven genetic testing services in reproductive medicine. The company works with in vitro fertilization clinics worldwide, helping increase the chances of successful pregnancies and aid medical professionals in delivering healthier babies.

During Charme’s less than three years of ownership, the company’s tests grew at a 43.5 percent compound annual growth rate to reach 167,000 tests in 2018, driven by international expansion and increased product offerings, the source said.

Today the company’s global network spans 15 laboratories across 13 countries, including U.S. locations in Florida, California and New Jersey, in addition to R&D partnerships with universities including Stanford, Harvard and Baylor.

Igenomix supports more than 90,000 couples per year, EQT said in its news release. The U.S. represents its largest market, having first established operations in the country in 2012, it said.

EQT VIII seeks to make equity investment typically ranging between 150 million euros and 1 billion euros. Its geographic focus is primarily in Northern Europe, with a concentration in the healthcare, TMT and services sectors.

PwC and Allen & Overy advised EQT on the transaction, while Charme received advice from Arcano and Araoz & Reuda.

Action Item: Read Charme Managing Partner Matteo di Montezemolo: mdm@charmecapitalpartners.com