Ironbridge Wins Award for Best Mid Market Buy-Out in 200830-Sep-2008
September 30, 2008
Ironbridge Capital won the 2008 AVCAL Private Equity and Venture Capital Award for the best management buyout, $100 million to $500 million. The winning deal was the New Zealand aged care business Qualcare, exited late last year with the sale of the business to Retirement Care (NZ), an investment vehicle of Macquarie Global Infrastructure Fund II. The deal provided a 4.2 times return on investment and achieved an IRR of 92.5 per cent over an investment period of about 41 months.
Ironbridge initially invested $36 million in a number of New Zealand aged care businesses in mid 2004 and added properties through significant further investment the following year. All of the initially acquired businesses were partly owned by a pioneer of the development of aged care properties in New Zealand, Greg Tomlinson. Mr Tomlinson reinvested a significant proportion of his proceeds and became chief executive of Qualcare Holdings Limited. The consolidation strategy created one of the largest aged care businesses in New Zealand.
The award was received by Ironbridge managing partner Neil Broekhuizen and Kerry McIntosh of the firm’s Auckland office. Mr Broekhuizen said the deal was a classic private equity strategy of backing an able chief executive. He said the acquired businesses had been identified as having potential for growth through the development of unused real estate.