“The distribution chain is often very long with various carriers handling the packages in many different environments,” says Gupta. “So the ability to track the packages and the temperature at all given points in time is critical to maintain efficacy of the drugs.” AeroSafe’s packaging and re-use business model also substantially reduces its customers’ greenhouse gas (GHG) emissions. After its use by the end-user – often a healthcare facility or provider – each package is returned to AeroSafe, which reconditions it and deploys it in the next distribution supply chain. “AeroSafe is essentially renting its boxes out to customers,” says Gupta. “This re-use loop is good for the environment and helpful for the ESG-compliance efforts of its customers.”
Flexstone, a co-investment specialist, first invested in the preferred shares in AeroSafe in 2015 and has participated in further rounds since. The latest round is the largest so far and will help AeroSafe ramp up its production and play a leading role in the global distribution of temperature sensitive drugs, including vaccines to combat COVID-19.
This is a vital service given that many of the vaccines need to be stored and transported at very low temperatures. The Pfizer/BioNTech vaccine, for instance, must be stored at -70C in order to retain its full efficacy. Moderna has said that its vaccine formula can remain stable at 2-8C for up to 30 days. The investment fits with Flexstone’s guiding philosophy of co-investing only when a deal is within the “sweetspot” of the lead investor. That is, where the lead investor has a specific proven skillset to help grow the business and mitigate downside risk.
In this case, the lead investors in AeroSafe have specific expertise in growth stage companies and those within the healthcare sector. “We are very excited about the growth potential of Aerosafe. It has grown rapidly this year despite the challenges posed by the pandemic. We expect even stronger growth next year as demand for its services to ramps up.”
Based in New York state, AeroSafe largely focused on the US market until recently. Funding rounds have enabled it to expand its services to Europe and Asia through a network of partner relationships.
For further reading:
- Flexstone Partners completes 100th co-investment
- Flexstone Invests in Two Deals in US and Europe
- Flexstone Partners wins USD100m private equity mandate with Hostplus
- Flexstone Expands Portfolio with Stakes in Power Services and Biotech
- Private Equity Investing During Crisis Markets
- How Well Will the Private Equity Markets Withstand the Crisis?
- Flexible Access to Private Equity
- Mid-Market Private Equity: 2.0
- Flexstone's Co-Investment Framework
- Flexstone Partners Sweet Spot Proprietary Framework
- How to Hit the Buyout Sweet Spot?
Flexstone is a leading investment solutions provider in private assets with a global reach and local footprints in New York, Paris, Geneva, and Singapore. It specializes in the selection of private equity, private debt, real estate, and infrastructure fund managers for investment by Flexstone’s clients. Flexstone manages primary and secondary investments as well as co-investments. Flexstone’s expertise is distinguished by a high flexibility in building customized portfolios that are tailored to the unique needs and constraints of each investor whether institutional or private individual. Flexstone offers a large range of services, from advising on private assets portfolio construction to the management of fully discretionary separate accounts and funds of funds. Flexstone, with more than 40 professionals, manages or advises $8.1 billion*. It is a majority owned subsidiary of Natixis Investment Managers, one of the largest investment managers worldwide. Further information: www.flexstonepartners.com
* Source: Flexstone Partners at 08/31/2020. Assets under management and advisory made up of commitments for closed-end private placement funds, and sum of Net Asset Value and unfunded commitments otherwise.
An affiliate of Natixis Investment Managers
Flexstone Partners, SAS – Paris
Investment management company regulated by the Autorité des Marchés Financiers. It is a simplified stock corporation under French law with a share capital of 1,000,000 euros Under n° GP-07000028 –Trade register n°494 738 750 (RCS Paris)
5/7, rue Monttessuy,
Flexstone Partners, SàRL – Geneva
Independent (unregulated) asset manager, under Swiss Federal Act on Collective Investment Schemes (“CISA”), supervised by Commission de haute surveillance de la prévoyance professionnelle (“CHS PP” and regulated by the Swiss Financial Market Supervisory Authority (“FINMA”) under Anti Money Laundering requirements. It is a limited liability company with a share capital of 750 000 CHF.
Trade register n° CH-660-0180005-1
8 chemin de Blandonnet
Vernier 1214 Geneva
Flexstone Partners, LLC - New York
Delaware corporation, registered with the United States Securities and Exchange Commission as an investment adviser
28th floor of 745 Fifth Avenue, New York, NY 10151.
Flexstone Partners, PTE Ltd - Singapore
61 Robinson Road, #08-01A Robinson Centre
Natixis Investment Managers
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.
Copyright © 2021 Natixis Investment Managers S.A. – All rights reserved