RJD backs UK mental healthcare provider

The former subsidiary of Royal London has pumped £6.1m into Raphael Healthcare in a deal that values the business at £30m.

RJD Partners, the lower mid-market firm, has injected £6.1 million (€7.8 million; $12 million) into Raphael Healthcare, a UK provider of specialist mental healthcare services to women. 

Since Raphael was founded in 2006, the management team has expanded the hospital capacity from 30 to 41 beds and secured preferred supplier status with Primary Care Trusts – the public bodies responsible for delivering healthcare services – in the Midlands and the South West.

Following RJD’s investment, the management plans to expand the business by opening new hospitals. The first site has already been acquired.

John Dillon, partner at RJD who led the investment with fellow partner Alex Hay, cited in a statement the management’s “unique blend of NHS and private sector experience.”  

“The management team has created a specialist, high quality service offering which addresses an important a growing niche in the mental health sector,” said Dillon.

RJD, which spun out from life and pensions group Royal London in 2005, is currently investing its second fund, which closed on £180 million in July 2007. Raphael is the firm’s first investment in the healthcare sector.