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Blackstone, CPPIB buy into Genstar Capital’s Advarra, valuation believed to be about $5bn

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Blackstone and the Canada Pension Plan Investment Board have agreed the buyout of Genstar Capital’s Advarra, in a deal believed to value the business at about $5bn.

Genstar and Linden Capital Partners will continue to hold stakes in Advarra, which provides services to ensure clinical trial participants safeguarding, compliance and optimize research performances.

Blackstone is investing in Advarra through its core private equity strategy, which invests in companies for longer periods than traditional private equity.

A Bloomberg report earlier this month pegged the deal at about $5bn, citing unnamed sources.

Anushka Sunder, a senior managing director at Blackstone, said, “We are proud to back Advarra given its important role in enabling high-quality clinical R&D and helping its clients bring life-changing treatments to patients.

“Sustained innovation and scientific advancement in life sciences is one of our highest conviction investment themes across Blackstone.”

Sam Blaichman, managing director and head of North American direct private equity at CPP Investments, added, “Advarra has established a strong reputation in the industry and is well positioned to address the growing need for high-quality clinical research solutions, making it a good fit for our long-term investment strategy.”

Genstar acquired a majority stake in Advarra from Linden Capital in 2019, in a deal believed to value the business at about $1.3bn.

The company’s main competitor, WCG, is also private equity owned, with Leonard Green and Partners buying into the Arsenal Capital-baccked business in 2019.

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