HgCapital takes majority stake in Kinapse

HgCapital, the manager of HgCapital Trust, has announced that it has made a majority investment in Kinapse, a global provider of advisory, capability building and operational services to the life sciences industry, headquartered in London. HgCapital Trust will invest in Kinapse alongside other institutional clients of HgCapital, who will participate through the HgCapital 7 Fund. The terms of this transaction were not disclosed although the trust will contribute a total of approximately £10.0m. The managers say that the acquisition of Kinapse represents the eighth investment by the HgCapital 7 Fund, and following completion, the fund will be approximately 55% invested.

The managers say that, based on the 30 November 2015 reported NAV (including all announced transactions) HgCapital Trust’s liquid resources available for future deployment are estimated to be £49.3m (10% of the pro-forma 30 November 2015 NAV, excluding a £40m standby facility). The transaction will reduce the Trust’s outstanding commitments to invest in HgCapital deals to approximately £128m (26% of the pro-forma 30 November 2015 NAV).

HgCapital say that they will back the existing management and assume majority ownership from management shareholders and Synova Capital. The Group has offices in the UK, India and the United States and employs over 500 professionals worldwide. Kinapse is a partner of 9 out of the top 10 global pharma companies. HgCapital say that their services team has followed Kinapse closely for several years, and this investment fits HgCapital’s strategy of investing in leading global providers of regulatory-driven services across several industry end-markets, examples of this focus include ATC and Radius within the Services sector, regulatory software in the TMT sector, and significant previous experience investing around the Healthcare sector.

HgCapital takes majority stake in Kinapse : HGT