QHP Capital Forms Continuation Vehicle for Catalyst Clinical Research

November 01, 2022

Strategic Financial Sponsor to Continue Supporting Catalyst in its Next Phase of Growth

RALEIGH, N.C.–(BUSINESS WIRE)–QHP Capital L.P. (“QHP”), a Raleigh-based private equity firm which manages the NovaQuest Private Equity family of funds, today announced a single asset continuation fund (the “Catalyst SPV”) backing Catalyst Clinical Research LLC (“Catalyst” or the “Company”), a global contract research organization (“CRO”), providing full-service clinical development support for oncology-focused biotechs.

QHP originally invested in Catalyst in October 2018 through NovaQuest Private Equity Fund I, L.P. (“Fund I”). As part of a buy-and-build strategy, QHP and Catalyst have made four add-on acquisitions, creating a full-service, oncology-focused CRO (Catalyst Oncology) operating alongside the legacy FSP services now marketed as Catalyst Flex. During this time, the Company has grown from approximately 100 staff (including employees and contractors) to more than 800, and has won accolades including CRO Leadership Awards and Inc. Magazine Best Places to Work. Nick Dyer, Chief Executive Officer of Catalyst, has led the Company under QHP’s majority ownership and will continue to lead the business during the next phase of growth.

“We partnered with QHP to build an oncology specialist focused on small- to mid-sized biotechs, a highly-technical area of clinical development that was underserved by existing players,” said Dyer. “QHP has been an invaluable partner to us in achieving the objectives in our first chapter of growth, and we are excited to have the benefit of strategic and operational continuity from that partnership in chapter two.”

“Catalyst was an important early investment for Fund I, and Nick has built an incredible organization alongside his management team. We are excited they chose to partner with QHP again and are confident in this team’s ability to execute on their objectives of building the leading, global oncology CRO,” added Vern Davenport and Jeff Edwards, Partners at QHP.

QHP partnered with Apogem Capital (“Apogem”) as the lead investor. “We were aware of the success of Catalyst and QHP through our primary investments in Fund I and were enthusiastic about the opportunity to partner with such an outstanding group of operators,” said Michael Zeleniuch, Managing Partner at Apogem.

Ropes & Gray acted as legal advisor to QHP and Smith Anderson acted a legal advisor to Catalyst. Debt financing for the transaction was provided by MidCap Financial and Apogem Capital. The Catalyst SPV syndicate included new investors to finance the transaction. Terms of the transaction were not disclosed.

About Catalyst Clinical Research

Catalyst is a clinical development organization providing highly customizable clinical research solutions to the global biopharmaceutical industry through two established solutions: Catalyst Flex and Catalyst Oncology. With more than 800 staff across 35 countries, the company provides multi-therapeutic global resourcing and functional services through Catalyst Flex and a full-service oncology CRO offering through Catalyst Oncology. The company’s flexible service model is built from more than a decade of listening to customers, devising customer-centric solutions, and helping them drive breakthrough clinical development studies leveraging Catalyst’s expert teams and innovative technologies.

About QHP Capital

QHP Capital, L.P. invests in lower middle market healthcare companies primarily in North America, with a focus on services and technology companies where a strategic partner and operating resources can accelerate growth. Targeting companies in healthcare and pharmaceutical services industries, QHP invests in the form of buyouts, growth equity, and recapitalizations. For more information, please visit www.qhpcapital.com.


Press Contacts
Jeremy Milner, BackBay Communications
(401) 862-9422

Silvia Cruz, QHP Capital L.P.