Graphite Capital, a UK mid-market private equity firm, has completed a further GBP24m development capital package to support a major expansion programme by Willowbrook Healthcare.
Willowbrook is a nursing and dementia care home group for the elderly.
The new funding takes the total commitment of Graphite funds, the management team and its banking partners to almost GBP80m. In November 2008, Willowbrook raised GBP53m to finance the initial development of care homes.
Willowbrook, whose care homes operate under the Avery brand, currently has three homes located in Sunderland, Kirkstall (Leeds) and Newcastle-under-Lyme, with a further five under development. It will use the new funding to develop and acquire additional homes which it expects will increase the total number of beds to over 900 in the next couple of years.
The new funding package comprises a GBP11m equity commitment from Graphite’s most recent fund, Graphite Capital Partners VII, and the Willowbrook management team.
The existing banking syndicate, led by Royal Bank of Scotland, is providing GBP13.3m in additional debt.
Willowbrook managing director John Strowbridge says: “Willowbrook provides the highest quality nursing and dementia residential care in the UK and we are seeing strong client demand wherever we open a new home. The standards of care we provide for our clients are at the heart of our success. We value the long term partnership we have with Graphite which is enabling us to continue expanding across the UK.”
The transaction was led for Graphite by Mark Hall, investment director, and Mark Hudson, partner, who said: “Demographic changes are driving the need over the medium term for additional and improved care homes for the elderly in the UK. We are delighted to be providing Willowbrook with further development capital. To raise additional debt facilities in a period of challenging capital markets is a testament to the quality of the business and its management team and to the commitment of our banking partners, led by Royal Bank of Scotland.”