Private equity (PE) firms Credian Partners and Gravity PE have exited their investment in U.S.-based genetic sequencing company Psomagen after five years, generating an internal rate of return (IRR) of 33%, industry sources said on January 19.

Psomagen, previously called Macrogen Corp in the U.S., was founded in 2004 as a subsidiary of Macrogen in South Korea. Financial investors acquired convertible bonds (CBs) worth $10 million issued by Macrogen Corp that were given a guarantee.

The CBs were acquired through a project fund, and investors then changed the company’s name to Psomagen, repaying some of the CBs during a process to list Psomagen’s shares on the tech-heavy Kosdaq market, which started in 2019. CBs worth $3.75 million were handed over to Macrogen and others worth $1.25 million were given to Macrogen chairman Seo Jung-sun.

Psomagen went public in July 2020 and investors converted the remaining CBs into equities at 2876 won per share. After the conversion, Credian Partners’ shareholding was about 10% and it exited the company by selling its stake at the end of 2020.

Founded in 2014, Credian Partners invested in Green Cross BioTherapeutics (GCBT), a Canadian subsidiary of Green Cross, Psomagen and Wise UX Global through its three project funds. The PE firm exited GCBT in 2020, as Green Cross Holdings decided to offload GCBT to Grifols in July. (Reporting by Hee-yeon Han)