Federation AM sells George Clinical

Alternative investment manager, Federation Asset Management, has announced the sale of its indirect investments in George Clinical, a global medical research organisation, to Hillhouse Capital for an undisclosed sum.

The manager said the sale price represented an IRR of 57% or 4.9x on Federation’s invested capital over a 3.5 year investment period.

Federation, which was invested in George Clinical by way of an investment in its holding company, George Health, will retain an investment in George Health’s other divisions, including George Medicines and its prospective pipeline of pharmaceuticals.

“We are pleased to have sold George Clinical to Hillhouse Capital for a sizeable increase on our original investment,” Federation’s chief executive officer Cameron Brownjohn said.

“We are also pleased with the depth and performance of Federation’s broader portfolio and pipeline. Our investors are well exposed to sectors that benefit from the aging population mega trend which to us means strengths in healthcare, seniors financing and other white collar service sectors.

“Our investors are also well exposed to a range of social infrastructure and energy transition infrastructure which we believe has strong growth potential [And] we remain positive on the deal flow outlook for private equity for the rest of 2023.”

George Clinical is a global medical research organisation which conducts large-scale clinical trials, epidemiological studies, health systems research, and population-based studies. It services the industry focused on the treatment of chronic diseases such as heart disease, high blood pressure and diabetes, the firm said.