Executive Summary

Background

BV Investment Partners (BVIP) is a leading middle-market private equity firm based in Boston. BVIP invests in many industries, including Technology & Outsourced Services within life sciences. BVIP has raised $1.7B in its latest fund and is looking for good investment opportunities in the pharmaceutical services sector exploring growth-oriented businesses.

Business Question

BVIP was specifically interested in investing in peripheral businesses related to Antibody Drug Conjugate (ADC) and Cell & Gene Therapies (CGTs). After preliminary investigation by the CBS project team, BVIP’s interest expanded to investment opportunities in the broader personalized medicine space, however, they were unclear on which related market best aligned with their investment criteria. Consequently, the project goals were to:

· Apply fundamentals of strategy consulting and rigorous research to confirm if BVIP should invest in personalized medicine peripherical businesses, and

· Identify potential target companies in this space that align with BVIP’s investment criteria

Analyses Conducted

Given the broad scope, a structured funnel consisting of 4 stages was applied to narrow the question and run our analysis (Figure 1). At each stage a list of criteria was applied that related to BVIP’s investment thesis and typical portfolio. This allowed the team to move through each stage of the funnel and eliminate business areas less suited for BVIP investment.

Figure 1: Prioritization funnel

Results

Based on our analysis we identified 4 business segments in the personalized medicines space that best met BV’s investment criteria. Based on these segments and BV’s investment criteria, the project team, supported by BVIP resources, narrowed an initial list of 300 companies down to 24 potential investment opportunities.

Final Recommendation

At conclusion of our project, we

· confirmed that BVIP should consider investment in personalized medicine space through identification of 4 target peripheral supporting business areas

· identified 24 potential companies across these peripheral supporting businesses for BVIP to further assess

Final thoughts

Our team thoroughly enjoyed working with BVIP. We were all able to dive deeper into the private equity space, engage more with healthcare experts, and become more familiar with strategic consulting. We look forward to keeping in touch with BVIP and are excited about their future investment moves.