Great Point Partners is a Connecticut-based investment firm that strives to help health care companies reach their full potential. Founded in 2003, Great Point Partners (GPP) has successfully invested more than $1 billion in the industry and has engaged in financial dealings ranging from acquisitions to growth recapitalizations.
In October of 2016, GPP announced the completion of growth recapitalization for Clinical Supplies Management, a packaging, labeling and logistics solutions firm that serves the pharmaceutical industry. The goal of the recapitalization was to allow Clinical Supplies Management to implement its growth strategy while also investing in management expertise and infrastructure improvements. Growth recapitalization is just one type of the broader recapitalization investment strategy.
Recapitalization refers to the restructuring of a company’s debt and equity holdings, which can be used to improve tax benefits, cash flow balances, and ownership holdings, among other goals. The growth recapitalization strategy provides liquidity for businesses to pursue growth objectives as well as improvements to operations and infrastructure. This is accomplished through the sale of a large portion of shares in the business to raise funds, while still allowing the current leadership to retain operational control of the firm.