Bain Scores Over Tenfold Return with $8.7B Cerevel Sale

Private equity firm Bain Capital stands to make more than 10 times the $250 million it invested in Cerevel Therapeutics Holdings Inc (CERE.O) following the neurology-focused drug developer’s $8.7 billion sale to AbbVie Inc (ABBV.N), according to regulatory filings. Boston-based Bain committed $350 million in 2018 to carve Cambridge, Massachusetts-based Cerevel out of Pfizer Inc (PFE.N), but only $250 million of that was drawn, the filings show. The deal with AbbVie, announced on Tuesday, now values Bain’s 36.5% stake in Cerevel at about $2.7 billion. This more than tenfold return is significantly higher than the private equity industry’s average return on invested capital in the healthcare sector of 2.9 times, according to investment advisor Cambridge Associates.

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