EQT purchase of Adalvo marks Metric Capital’s largest exit
22nd August 2025 09:15 AM
Metric Capital Partners’ exit from Adalvo is its largest deal since launching in 2011, managing partner John Sinik said, announced just 18 months after its initial investment.
The majority stake sale to EQT was revealed last month. Sinik declined to disclose returns, but described it as “well north of a great private equity deal.”
Though not widely auctioned, the firm received inbound interest from a few sponsors via Jefferies, he said. Adalvo reported EUR 80m – EUR 85m EBITDA ahead of the sale, up from EUR 30m in 2023, according to a source close to the situation.
“There’s a lot to like about Adalvo,” said Sinik, pointing to its high growth, asset-light and scalable model, and high contract visibility with existing contracts that underpin the next few years of revenue.
Based in Malta, Adalvo develops dossiers for generic and specialty medicines, partnering with more than 170 pharma firms across over 140 countries.
Deal terms
Metric initially invested EUR 211m (including co-investments from its limited partners, or LPs) in Adalvo back in 1Q24, enabling Adalvo’s chairman Róbert Wessman and his investment firm Aztiq to acquire the stake in Adalvo which was not already owned by Aztiq.
Metric provided capital in loan form, taking the senior-most part of the capital structure, with Aztiq in the equity position and retaining control. “We went from 0% LTV to around 40% LTV. The next 60% of the value of the company was Aztiq’s ownership stake,” Sinik said.
Metric also had call protection and convertibility into equity baked into its terms. Adalvo’s doubling of EBITDA sweetened the equity piece in comparison to the credit, he said.
When Adalvo was sold, Metric had the option to stay in the credit instrument and make a mid-teens coupon – or convert into equity. It chose the latter and sold the majority to EQT, allowing the firm to take capital out of the deal.
Approximately 10% of the converted equity was re-invested into the EQT deal, he said.
“We believe in Adalvo. We think it’s a great company and that EQT is doing a very attractive deal. This is a classic win-win in which Metric achieves a fantastic exit and EQT acquires a business with substantial growth potential.”
Fund V momentum, to Fund VI
Metric’s exit from Adalvo closely succeeds another recent milestone – the final closing of its fifth flagship fund MCP V, last month, at a EUR 1bn hard cap.
Adalvo was invested through both MCPV IV and MCP V, and marks the fourth exit from MCP IV and the first exit from MCP V, as per the announcement.
“As you can imagine, our LPs are extremely pleased with this outcome. Some of the fund V LPs came into the final close just two months ago and are already seeing an exit,” Sinik said. LPs invest in private equity funds run by general partners (GPs) like Metric Capital.
Deployment for Fund V is already ahead of pace, with four deals in exclusivity, which will bring the total commitment level to 75%.
“We’ll probably press the button on raising Fund VI sometime in 2026. EUR 1.5bn feels like the perfect number.”
Around EUR 1bn – EUR 1.5bn would be the ideal region for Metric fund sizes, as it ensures discipline in both capital deployment and deal origination, he added.
Strategy and origination
Founded in 2011, Metric manages EUR 3.4bn across five funds, providing flexible capital solutions across the capital structure of a company – including senior debt, subordinated debt, convertible instruments, preferred and/or common equity.
Typical transactions include financing buyouts and acquisitions; liquidity/rescue financing; minority buyout financing; and growth capital.
Portfolio companies often seek Metric at inflection points, preferring its value-add model over traditional PE dilution or control loss, Sinik said.
Metric offers board participation and strategic input in exchange for senior capital positions. Its model combines credit returns with smaller equity stakes, preserving founder upside, he said.
It typically invests EUR 75m – EUR 100m per deal, up to EUR 200m with LP co-investment, doing around five deals a year to stay selective, he added.
Adalvo reflects Metric’s off-market approach, Sinik said. His prior work with Wessman – when they worked on high-yield bonds together 20 years ago – helped originate the deal. “We don’t get our deals from auctions,” he said.
The GP reports a weighted average internal rate of return (IRR) of 29% across 30 exits in 14 years, Sinik said. This is achieved without using leverage at the fund level, with Metric also retaining downside protection, he added.
“While a few private equity groups may point to a 29% IRR over a 15-year period, they typically take pure private equity risk. What sets us apart is achieving those returns while maintaining meaningful downside protection.”
Adalvo is Metric’s fifth healthcare deal. The firm views healthcare as a sector where it has built significant expertise, having previously invested in FAMAR, Noden Pharma, Sanovel, and Global Diagnostics.
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