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Aureos invests US$10M in leading Mexican clinical research organization

19 July 2012

(Aureos Capital) July 19, 2012 – The Aureos Latin America Fund (ALAF) today announced an investment of US$10M in Mexico’s leading clinical research organization (CRO), Investigación Farmacológica y Biofarmacéutica (IFaB). ALAF is a fund established by Aureos Capital Limited, a leading small and mid-cap private equity fund manager investing in global growth markets.

IFaB is Mexico’s leading provider of outsourced research and development services to the pharmaceutical and biotechnology sectors. Through its highly effective drug development techniques, IFaB provides its clients, including some of the world’s largest pharmaceutical companies, with high quality drug development services.

The ALAF investment will allow IFaB to acquire additional state-of-the-art analytical equipment and to grow and develop its medical and research teams. Following the investment, IFaB will become a full service clinical research organization which will allow it to perform more specialized studies for its clients.

Aureos has a successful track record of investing in the clinical research sector. Most recently, it exited its investment in Accutest Research Laboratories, which had grown into one of India’s leading clinical research organizations. Following a successful period of growth, Aureos sold its stake to Global Pacific Partners, delivering strong returns to the business’s local partners and to Aureos’ investors.

Speaking on the investment, Erik Peterson, Aureos’ Senior Partner in Latin America, said: “The clinical research industry, particularly in growth markets, is looking for investment. The expansion planned for IFaB is largely being driven by existing customer demand. Drug development can now be done more efficiently and more productively outside the traditional centers in the US and Western Europe.”

“IFaB is a clear example of how a global private equity manager, like Aureos, can use its local knowledge base and synergies across the world. The experience of investing in India’s clinical research market has helped Aureos’ local managers in Latin America and Mexico to identify a workable structure for the investment in IFaB”, added Mr. Peterson

Miguel Olea, Senior Partner in Aureos Mexico, said: “The pharmaceutical industry in Mexico is currently outsourcing 25% to 30% of its research and development costs to gain competitiveness and efficiency in the certification processes.”

“The quality of the management talent in IFaB has been an important driver in the growth of the Company. The next step for IFaB is to expand its operations and establish further links with laboratories and pharmaceutical companies in the US, Europe as well as to enter other regions including the markets of South America.”

Dr. Fermín Valenzuela, a recognized scientist with an established academic reputation, leads the IFaB team. He has been one of the main promoters of clinical research organizations (CROs) in Mexico and has participated in developing the legislative and regulatory framework for their activities.

Dr. Valenzuela comments: “We are delighted to have Aureos as our partner in IFaB. I am confident that the experience Aureos has in our industry and the strong relationship that we have been able to develop with their Mexican team will be key factors in the future development and success of our company.”

IFaB works with leading international companies, such as GlaxoSmithKline and Pfizer, as well as local pharmaceutical companies. To date, it has performed studies for clients in the US, Europe, Brazil, Mexico, Chile and Venezuela.

About Aureos Capital
Aureos Capital is a private equity fund management company which specializes in providing expansion and buy-out capital to small and mid-cap businesses across Asia, Africa and Latin America.

Since its establishment in 2001, Aureos has increased its funds under management to US$ 1.3 billion and extended its geographical footprint to over 50 emerging markets covering Asia, Africa and Latin America, by establishing 17 regional private equity funds.

Aureos’ funds are managed through its network of more than 20 offices worldwide, by a team of over 90 investment professionals who combine world-class financial and operational expertise with unrivalled local knowledge and experience.

Investors in Aureos funds include institutional investors, bilateral and multilateral development finance institutions, pension funds, sovereign wealth funds, fund of funds, family offices and foundations and high net worth individuals.

Aureos is to be acquired by Abraaj Capital in July 2012. With the completion of the acquisition, the Abraaj Group, including Aureos, will have a presence in more than 30 countries across growth markets, over 150 investments managed by a dedicated team of investment professionals and approximately US$ 7.5 billion in assets under management.