financial and management consulting services in the areas of corporate strategy, budgeting for future corporate investments, acquisition and divestiture strategies and debt and equity financings.
We paid a $0.1 million quarterly management fee to GTCR for these services. We also reimbursed GTCR for out-of-pocket expenses incurred while providing these
services. The advisory services agreement also required that we pay placement fees to GTCR of 1.0% of the gross amount of any debt or equity financings, including the IPO. The advisory services agreement terminated in connection with the IPO.
We paid GTCR $4.2 million, $0.5 million, and $0.5 million in each of the years ended December 31, 2020, 2019, and 2018,
respectively, for services in connection with the advisory services agreement. We may continue to engage GTCR from time to time, subject to compliance with our related party transactions policy.
During the year ended December 31, 2018, $52.0 million of capital distributions were made to certain legacy unit holders of MLSC
Holdings, LLC (MLSC), the parent entity of Cygnus, including GTCR. The 2018 distribution was treated as a preferred return of capital per the terms of the MLSC limited liability company agreement. There were no such distributions made
during the year ended December 31, 2019. A tax distribution of $0.3 million was made to the non-controlling interest holders of MLSC during the year ended December 31, 2020.
In October 2020, we paid GTCR a placement fee of $3.7 million in connection with our entry into our new Credit Agreement dated
October 19, 2020.
Payments made to and from MLSH 1 and MLSH 2 in Connection with the IPO
In November 2020, we received net proceeds of approximately $1.8 billion after deducting underwriting discounts and commissions from our
IPO, of which $1.5 billion was used to purchase 59,526,715 of LLC units in Topco LLC from MLSH 1, $208.1 million was used to pay MLSH 2 as consideration for certain mergers related to various reorganizational transactions effected in
connection with our IPO, and $33.7 million was used to acquire 1,319,148 outstanding shares of Class A common stock from MLSH 2.
In addition, in connection with the various reorganizational transactions effected in connection with our IPO, we sold shares of Class B
common stock to MLSH 1 for $1.7 million and made capital distributions of $88.6 million and tax distributions of $8.2 million to MLSH 1 for the year ended December 31, 2020.
Lease Arrangements
Cygnus
Technologies, a subsidiary of MLSC, has an ongoing lease agreement for facilities in Southport, NC with an entity controlled by a close relative of the president of Cygnus Technologies. The close relative was also previously an employee of Cygnus
Technologies who terminated their employment during the year ended December 31, 2018. The president of Cygnus Technologies also personally financed a loan to this entity, which was used to acquire the property leased by Cygnus Technologies. The
lease terms are considered to be consistent with market rates.
Cygnus Technologies paid $0.2 million of rent under this lease
agreement for each of the years ended December 31, 2020, 2019 and 2018.
Noncontrolling Interests
The noncontrolling interests in MLSC, the parent of Cygnus Technologies, represents equity interest that was retained by the unit holders of
the MLSC entity prior to its acquisition by Maravai. The president of Cygnus Technologies and his affiliated entity are the holders of the noncontrolling interests.
26