Internal Rate of Return (IRR) 46%

Fund

Advent 5

Sector

Healthcare
Money Multiple 2.8x

Inv. Date

July 2009

Exit Date

August 2012

Background

GenesisCare has cardiology practices in Brisbane, Melbourne, Adelaide and Perth, and radiation oncology practices in Melbourne, Sydney, Adelaide and Perth. During Advent’s investment, GenesisCare made 4 acquisitions and opened multiple new centres. As well as expanding into sleep diagnostics, the group also evolved its care model to include the establishment of a disease management platform.

While in partnership with Advent, the business significantly expanded its national footprint and developed a unique shareholding structure, which allowed key doctors to own a majority of the shares while retaining responsibility for management of clinical matters.

 

Investment Rationale

Key Qualities
  • Non-discretionary healthcare segments with strong demand drivers
  • Strong doctor alignment that sets GenesisCare apart from other healthcare business models
  • Highly experienced and proven management team
  • Acquisition pipeline had been identified, with several acquisitions in advanced discussions
  • Debt facilities to support the growth strategy
Investment Thesis
  • Continued strong organic growth at 10% plus
  • Double business footprint via successfully acquiring 6–7 practices
  • Hold margins in the core business and expand margins of acquisitions
  • Successfully exit via IPO or trade sale with full doctor support

Advent has been a great partner over the last three years as we rapidly expanded. They provided excellent support and guidance as we pursued our strategy to improve and expand access for patients to high quality healthcare.

Dan Collins Managing Director, GenesisCare

Value Add

  • Buyout of non-core assets from a larger parent into a single corporatised structure;
  • Ensure business was set up for growth: e.g. board, management team expansion, 100-day plan, executive incentives;
  • Provide ongoing support to execute the strategic plan: e.g. four acquisitions, multiple greenfield sites; and
  • Exit preparation and support: e.g. support via IPO/exit committee, and facilitate introductions.

Exit

At exit, GenesisCare had over 1,000 employees, including more than 100 physicians across both core specialisations. The business grew to revenue of ~$190 million and doubled earnings by financial year 2012. UBS managed a formal process targeted at major domestic and international private equity players that secured an exit to KKR.