Cinven exits Medpace in full, making 3.5x its money

  • Cinven bought Medpace from CCMP for $915 mln in ’14
  • CRO raised $161 mln in Aug. ’16 IPO
  • PE firm’s healthcare portfolio: Bioclinica, Stada Synlab

Cinven has unloaded its remaining stake in Medpace 4 1/2 years into its initial investment, generating a 3.5x return, according to a source.

The European private equity firm, following a series of previous sell downs, closed its final sell down of shares on Aug. 22, a Friday announcement said.

The sell down was done at a 138 percent premium to the company’s IPO price, the announcement said.

The completion of Cinven’s exit in the pharmaceutical contract-research organization comes two years after Medpace’s public debut on Nasdaq. Medpace in August 2016 raised $161 million in its IPO after pricing its 7 million shares at $23 each.

Cinven’s investment in Medpace dates to February 2014, when it agreed to purchase the Cincinnati company for $915 million. The transaction marked an exit for selling shareholder CCMP Capital Advisors.

Cinven’s acquisition was done through Fund V, which collected 5.3 billion euros ($7.1 billion) in June 2013.

During Cinven’s investment hold, the company saw significant international expansion in Europe and Asia, while also entering new therapeutic areas including antiviral/anti-infective and oncology, the announcement said.

Medpace during that period also grew its workforce to 2,700 today from about 1,500 in 2015, the announcement said.

Founded in 1992, Medpace provides outsourced clinical-trial services to pharma, biotech and medical-device companies. It concentrates on services offered to small-to-midsized companies, with operations spanning 36 countries.

Medpace’s market capitalization sat at about $1.96 billion on Aug. 24.

Cinven’s remaining healthcare portfolio includes eClinical provider Bioclinica, German generics maker Stada, and European lab-services company Synlab.

Action Item: Check out Cinven’s full portfolio here: https://www.cinven.com/where/investments/