Choice Care - Caledonia Private Capital

Choice Care is the owner and operator of residential care homes for adults with learning disabilities and mental health disorders, and provider of supported living services. It has 60 properties serving over 500 individuals plus over 100 individuals in supported living.

Background

When we backed CEO Edwina Johnston to acquire the business in August 2013, we had two priorities: one, to support the management team in maintaining the optimum care standards and quality of accommodation; and, two, to provide capital for the business to expand its residential care and supported living services across the south of England.

Investment thesis

Over the course of our ownership we implemented an organic growth strategy, supported by additional capital from Caledonia, which increased the number of care homes Choice operated from 47 to 60 and increased its residential capacity by some 32%, from 391 to 514 beds. Choice also invested significantly in its head office and central overhead functions, both of which helped the business to retain market leading compliance ratings with the Care Quality Commission.

In October 2018, Choice Care was sold to iCon Infrastructure for a consideration of £153m generating a net IRR of 14.3% and a money multiple of 1.9x.

Investment Date:

August 2013

Investment Status:

Realised

Business Description:

£49.5m

Investment Type:

Secondary MBO; majority

Initial equity investment

£49.5m

Caledonia NAV:

Realised proceeds: £105.5m

Caledonia Private Capital Team:

Tom Leader

Related Press Releases:

Disposal (investis.com)

www.choicecaregroup.com

CEO Perspective

“Caledonia has been a very supportive and involved financial partner over the past five years, which has enabled us both to develop new homes and improve the quality of our existing services”

Edwina Johnston, CEO

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