Building on the success of its previous investments in the care home sector, Graphite backed an experienced team to launch Avery Health in October 2005. With our support, the management team subsequently established two further companies, Optimum and Willowbrook. The aim was to build and acquire a high-quality portfolio of elderly care homes targeted mainly at the private pay market.
In a competitive market, Avery differentiated itself through the standard of its care homes and the quality of the care provision, always aiming to become the home of choice in an attractive catchment area. The market was growing consistently, driven by increasing demand from an ageing population and a shortage of high-quality homes. Avery and its successor companies grew rapidly, making seven acquisitions in addition to developing new sites.
KEY BUSINESS ACHIEVEMENTS
successfully raised almost £150m of bank debt alongside £72m of development capital from Graphite
completed seven acquisitions alongside an active build programme
operated 45 homes in total, comprising almost 3,000 beds
successfully positioned themselves as premium operators, making them attractive to trade consolidators
Internal Rate of Return
The three businesses were sold to separate acquirers for a combined £325m, with Graphite generating a return of 2.1 times its investment and an IRR of 36.5 per cent.