GI Partners triples money in healthcare exit

The mid-market firm has sold Plum Healthcare after a six-year holding period, during which GI helped grow EBITDA at the nursing facility operator by 32%.

US- and Western Europe-focused mid-market firm GI Partners has sold healthcare services company Plum Healthcare to Bay Bridge Capital Partners, generating roughly a 3x return multiple. Financial terms of the transaction were not disclosed.

Plum Healthcare specialises in improving underperforming nursing facilities, primarily in California. GI acquired the company in 2006, investing from its $1.45 billion Fund II that closed in 2008. During the six year hold period, Plum acquired 39 nursing facilities, growing its revenue by 32 percent and earnings before interest, tax, depreciation and amortisation by more than 30 percent, according to a statement.

GI Partners was unavailable for comment at press time.

The firm closed its third fund on $1.9 billion in 2009. Like all of GI's funds, Fund III also invests in real estate, as well as sectors including retail, logistics and transportation, media and entertainment, financial services, and technology and telecom. The fund has existing investments in eight North American companies, including Texas-based software business Softlayer Technologies, and six European companies, including UK-based healthcare company Advanced Childcare.

Limited partners in Fund III include the California State Teachers’ Retirement System, the New York City Employees’ Retirement System and the Florida State Board of Administration.

Menlo Park-headquartered GI has around $8.5 billion of capital under management in North America and Western Europe.