Campbell Lutyens was exclusive financial advisor to Aztiq, the management team of generic and biosimilar drugs manufacturers Alvogen and Alvotech. This innovative structured secondary transaction involved the refinancing by new investors of its equity interests, via a fund structure governed by an upside sharing mechanism.
Type: Structured secondary direct and restructuring
Mandate: $250m secondary capital raising / $1.2bn restructuring
Asset class: Healthcare
The objectives of Aztiq were twofold:
- Provide follow-on capital for Alvotech
- Set the foundations for the raising of a potential sector-focused private equity fund by the Aztiq team in future, based on the track record generated by portfolio company exits and the team’s experience managing third party capital for institutional clients
This innovative transaction solved for a number of complexities, including differing views on valuation, the need to establish an alignment of interests in a complex capital structure involving a number of legacy finance providers, and multiple fast-paced developments at portfolio company level.
The transaction was structured around a sharing mechanism governing the distribution of future proceeds from portfolio company exits, which provides downside protection to new investors by way of a larger share being paid to them up to agreed IRR and multiple hurdles, and a smaller share thereafter.