Interest in villages and care growing in the investment markets Marcus Darville quoted extensively in press from LEADERS SUMMIT - he has $850M to invest
Hot professional investor website mergermarkets. com dispatched senior journalist Louise Weihart to the LEADERS SUMMIT to hear Quantum Private Equity Director Marcus Darville speak. Her article was one of our most viewed stories the next day...
Hot professional investor website mergermarkets.com dispatched senior journalist Louise Weihart to the LEADERS SUMMIT to hear Quantum Private Equity Director Marcus Darville speak. Her article was one of our most viewed stories the next day. Here it is:
Date 21/03/2014
Heading Quadrant Private Equity actively seeking retirement village and aged care buys, director says
Main article Quadrant Private Equity is actively seeking retirement village and aged care buys for its 7th fund, which closed last month with AUD 850m (USD 770m), said director Marcus Darville.
At least one health company will be in the portfolio, he told this news service on the sidelines of todays Leaders Summit 2014, organized by aged care directory company villages.com.au.
Quadrant has not hired an advisor and is yet to decide if it will, Darville said.
It is seeking integrated retirement village operators that also offer aged care services as well as residential aged care operators. Potential targets must have a proven growth model that has been shown to work over a number of years as well as a brownfield and greenfield development pipeline. It is seeking companies with an enterprise value of around AUD 100m, with the aim of building them to IPO-able AUD 400m companies.
Darville said he expects there will be a listed market for aged care assets in the next three years. This in the wake of the successful listing of New Zealand retirement village operator Summerset [NZX:SUM ; ASX:SNZ], which dual listed on the New Zealand and Australians stock exchanges. Quadrant invested AUD 120m and exited at a value of AUD 340m.
Aged care reforms that come into being from 1 July 2014 in terms of the governments Living Longer Living Better aged care package is also fostering a more stable regime for the aged care sector, he added. Reforms include consumer choice around payments and providers being required to publish their prices.
In October 2013, Quadrant Private Equity invested some AUD 90m for a majority stake in Victoria-based aged care operator Estia Health, which was the 6th investment for its AUD 750m No 3 fund raised in December 2010. Barclays Capital advised on that deal.
by Louise Weihart in Sydney
