Sovereign Capital, the UK lower mid-market firm, has bought Parallel Options, a mental health care company, for £11 million.
Family shareholders of Parallel are seeking to resolve a succession issue through Sovereign. A spokesman for the private equity firm said the family were looking for an exit.
Eric Millard will become chief executive. Steve Huggett, previously commercial finance director at the Sanctuary Spa Group, has joined as finance director. Dominic Dalli will be the sole Sovereign representative on the board.
Parallel was established in 2001. As part of Sovereign’s buy & build strategy, Parallel plans to develop its existing range of services and facilitate a roll out to new areas.
Learning disability and mental health care is an area where Sovereign has substantial experience. This latest investment builds on earlier investments in CHOICE, TRACSCARE, Alkare and the Cascade Care Group.
Sovereign said it will continue to research this area and believes there exists an unmet need for providing services at the more challenging end of the special needs spectrum.
Sovereign’s investment was made alongside Allied Irish Bank, who provided senior debt facilities.