Abacus Finance Group has provided senior secured debt to support the acquisition of Summit Clinical Research by LongueVue Capital. Abacus also made an equity co-investment.
Summit Clinical Research (SCR) is an integrated research organization that specializes in Hepatology, a branch of medicine concerned with the study, prevention, diagnosis, and management of diseases that affect the liver, gallbladder, and pancreas. Within Hepatology, SCR specializes in non-alcoholic steatohepatitis (NASH), liver inflammation and damage caused by a buildup of fat in the liver. Three-quarters of Summit’s studies are dedicated to NASH therapeutics, while the remaining 25% are focused on non-alcoholic fatty liver disease, liver extension, and liver cirrhosis.
SCR operates a network of more than 95 research sites across the United States, Puerto Rico, France, Germany, Argentina, Italy, and Mexico. Through its site network, SCR works alongside providers and patients – both in-person and remotely – to increase participation in clinical trials and reduce administrative costs. SCR’s customers include pharmaceutical, biotech, and drug development companies. SCR was founded in 2018 and is headquartered in San Antonio, Texas.
Abacus funded the senior secured debt for LongVue’s buy of SCR as both Senior Secured Credit Facilities Administrative Agent and Sole Lender. “Once again, great work by the Abacus team,” said LongueVue Partner Ryan Nagim. “They know the sector well, and the result was a smoothly executed transaction, which is their hallmark.”
“This is our seventh transaction with LongueVue with whom we have built a terrific relationship over the years,” said Tim Clifford, the president and CEO of Abacus. “As in earlier transactions for them, our success was a function of our speed, cash-flow flexibility, and certainty of close – key aspects of what we call our Total Partnership Approach™.”
Abacus provides cash flow-based senior financing to private equity and family office-sponsored, lower-middle market companies that have EBITDA between $3 million and $15 million. Debt facilities can be as large as $50 million. Since Abacus’s inception in June 2011, it has closed over $2 billion in financings. Abacus is headquartered in New York City and is an affiliate of New York Private Bank & Trust which was founded in 1850.
The Abacus transaction team included Eric Petersen, Joseph Lee, and Greg Scanlon. “LongueVue has consistently brought us attractive opportunities like Summit that align well with our investment strategy,” said Mr. Petersen.
LongueVue makes equity and debt investments of $10 million to $50 million in companies that have over $3 million of EBITDA and up to $150 million of annual revenue. The firm is typically the first institutional investor in its founder-owned target companies. Sectors of interest include healthcare, transportation and logistics, specialty manufacturing, industrial services, consumer, food and beverage, and specialty packaging.
In October 2022, LongueVue held an oversubscribed and hard cap final closing of LongueVue Capital Partners IV LP with $360 million of capital. The firm’s earlier fund closed in March 2017 at its hard cap of $252 million.
LongueVue was founded in 2001 and is based in New Orleans with an additional office in Park City, Utah.
© 2022 Private Equity Professional | November 29, 2022
