Australian private equity firms interested in Blackstone’s CMAX

CMAX is located adjacent to the innovative Adelaide BioMed City precinct.

Bids for Blackstone’s clinical trials business CMAX are believed to be due in coming days and so far Australian private equity firms are being tipped as suitors.

Sources say Crescent Capital spin-off Genesis Capital is shaping up as a likely candidate, and Crescent may take a look, although CMAX could be too small for the Sydney-based buyout fund. Working on the sale of the business is advisory firm Lazard.

CMAX describes itself as one of Australia’s largest and most experienced early phase clinical trial units. It is based in Adelaide, opposite the Royal Adelaide Hospital, and adjacent to the innovative Adelaide BioMed City precinct.

It is Australia’s longest operating early phase unit and it conducts research for local and international clients, specialising in a range of early phase trials and first-time-in-human studies. The trials undertaken have resulted in the advancement of global medicines and technologies, from cancer treatment and pain control to early warning bio-devices and hormone replacement therapies.

Blackstone bought CMAX Clinical Research in 2024 through its Nucleus Network business and is in line with its global strategy of sticking to a handful of key investment thematics, including biotechnology.

CMAX at the time was owned by Japanese healthcare investor I’rom, which was one of the two largest suppliers of phase one clinical trial services in Australia along with Nucleus.

Blackstone purchased Nucleus Network in 2021 from Crescent Capital when it was generating about $40m of earnings before interest, tax, depreciation and amortisation. The sale price was about $700m.