August Equity, a UK mid-market private equity firm, has sold its investment in Healthcare Homes, a residential care provider for the elderly, in a Gbp75m (US$149m) secondary buyout to Bowmark Capital.
NM Rothschild advised August Equity on the sale. Bowmark invested Gbp35m of equity, with Royal Bank of Scotland providing a Gbp40m senior debt facility and further funding for bolt-on acquisitions and development.
Healthcare Homes was acquired by August Equity in August 2005. Under the private equity house's ownership, the business has grown from four homes and 100 beds to more than 800 beds across 21 homes.
In February of this year, August Equity backed Healthcare Homes' acquisition of Manorcourt Care, a privately owned care and nursing home group. Manorcourt was Healthcare Homes' eighth bolt-on acquisition under August Equity's ownership.