3i adult carer exit has 61% IRR(3)

FTSE 100 listed 3i had a 61 percent IRR and a 3.9 money multiple on the sale to Three Delta of a company it first invested in 10 years ago, Care Principles.

FTSE 100-listed 3i has sold adult care provider Care Principles to The Delta Fund, advised by Qatari-backed investment vehicle Three Delta, for £270 million ($547 million, €400 million).

3i registered a 3.9 times money multiple, and it had an IRR of 61 percent over the entire 10 year life of the investment, which they increased over time.

3i invested £1.5 million in Care Principles for a 38 percent stake in 1997, when managers from General Healthcare contacted 3i for help building and running medium secure hospitals across the UK. The company now has a turnover of £66 million.

The business provides these services for adults with learning difficulties and behavioural problems. The aim of the business is to allow the people in care have a minimally restrictive environment. The majority of patients are sectioned under the Mental Health Act.

3i appointed Paul Preston, former managing director of the independent hospital group BMI Healthcare, as chief executive in 2005. The former chairman of Westminster Healthcare Nick Irens became chairman at the same time.

3i has invested in Westminster Healthcare, the nursing home operator, and other healthcare providers for adults with learning difficulties Castlebeck, Caretech and Milbury,

Today PEO reported rival buyout firm Apax Partners has sold Healthcare at Home to Hutton Collins for £250 million after twelve years, realising more than a 40 times return.