The Montreux Healthcare Fund acquires The Regard Partnership for £119.5 million with financing from Macquarie Lending
London, 29 September 2014
Montreux Capital Management, the Advisor to The Montreux Healthcare Fund, and Macquarie Lending (Macquarie) today announced the purchase for £119.5 million of The Regard Partnership (Regard), a learning disability care homes business with freehold real-estate backing across England and Wales. The transaction closed today with Montreux Capital Management taking control of Regard.
Regard is one of the UK’s leading providers of quality residential care and supported living services to hundreds of users across more than 120 sites. The Montreux Healthcare Fund has taken a majority equity stake in Regard, bringing their significant management experience in the care homes sector. This includes (via the Montreux Care Home Fund) the majority ownership of the ACH care homes business.
Macquarie originated the Regard transaction and developed the capital structure of the deal. Providing a bespoke unitranche loan and minority equity financing, Macquarie introduced Montreux Capital Management to the transaction resulting in a competitive offer on an accelerated timetable. A $300 million credit fund advised by Farallon Capital Europe, which is focused on lending to European mid-market borrowers, also participated in the debt facility following an introduction by Macquarie.
Oliver Harris, Managing Partner at Montreux Capital Management commented: “Macquarie bring significant expertise in creatively developing and underwriting deals of this nature. This capability will allow us to focus on care delivery and growing Regard further throughout the UK with a number of opportunities on the horizon.”
Florian Herold, Co-Head of Macquarie Lending Europe, said, “Regard is a solid business with an impressive management team and we saw this as an excellent opportunity to bring multiple parties together, utilising Macquarie’s strong balance sheet to facilitate the deal. Having invested alongside Montreux previously we knew they were a very capable partner who can optimise the business for future growth.”
Sandie Foxall-Smith, CEO of Regard, said, "Montreux and Macquarie are excellent partners for the next stage of Regard’s development. Both parties recognise the opportunities available to us and we look forward to a highly productive partnership.”
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About Montreux Capital Management
Montreux Capital Management is a Swiss investment firm specialising in alternative and boutique funds. Managing funds for some of the world’s most respected global institutions and private clients, Montreux understands the importance of a disciplined and sustainable approach in the investment process. By focusing on specialist asset classes and strategies, Montreux aims to consistently generate returns regardless of wider of market conditions.
About Montreux Healthcare Fund
The Montreux Healthcare Fund Plc (the “Fund”) is established in accordance with the provisions of the Companies Act 2006. The Fund is a Qualifying Fund and complies with the requirements of the Isle of Man Collective Investment Schemes (Qualifying Fund) Regulations 2010 (the “Regulations”). The Fund is only suitable for “Qualifying Investors” as defined in the Regulations.
About Montreux Care Home Fund
The Montreux Care Home Fund is a Dedicated Fund of KMG SICAV – SIF, a Luxembourg-registered “Société d'Investissement à Capital Variable” organised under Luxembourg Law of 13th February 2007 relating to specialised investment funds (SICAV-SIF). The KMG SICAV-SIF is domiciled in Luxembourg. The Luxembourg regulator is “Commission de Surveillance du Secteur Financier” (CSSF). In accordance with the risks associated with the Montreux Care Home Fund, the shareholders have to be “well-informed”, “institutional/professional” investors.
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie operates in more than 65 office locations in 28 countries and employs more than 13,900 people. Assets under management total approximately €287 billion at March 31, 2014.
Part of the Group’s Corporate and Asset Finance business, Macquarie Lending is the principal finance and investing arm of Macquarie Bank focused on corporate and commercial real estate clients. As a leading primary lender and acquirer of secondary loans across Europe, North America and Australasia, Macquarie Lending has provided more than €7 billion in new loan commitments in Europe since 2009, with €1.7 billion in the last 12 months alone.
Recognising that every client is different, Macquarie Lending's expertise goes beyond traditional financing to adapt solutions to meet individual client needs. With offices in New York, Chicago, London and Sydney, Macquarie Lending has more than 80 experienced lending and investing professionals globally.
Farallon Capital Management, L.L.C. is a global institutional asset management firm founded in 1986. Farallon is headquartered in San Francisco and manages assets locally from offices in London, Singapore, Hong Kong, Tokyo and São Paulo through subadvisory relationships with Farallon Capital Europe, and its subsidiaries Farallon Capital Asia Pte. Ltd., Farallon Capital Asia (HK) Limited, Farallon Capital Japan LLC and Farallon Latin America Investimentos, Ltda., respectively. Farallon manages equity capital for institutions, including college endowments, charitable foundations and pension plans, and for high net worth individuals. Farallon employs approximately 170 employees. Farallon invests in public and private debt and equity securities, direct investments in private companies and real estate. More information about Farallon may be found at www.faralloncapital.com.