IFM Investors’ private equity team has confirmed its new Long Term Private Capital Fund (LTPC) is to make its first investment taking a majority stake, with UniSuper, in PRP Diagnostic Imaging.
The industry superannuation funds-owned investment firm and UniSuper will invest alongside PRP’s doctors and management team. No financial details have been disclosed but the investment is believed to be around $800 million.
The LTPC fund, which is targeting raising $1 billion, has UniSuper and HostPlus as its cornerstone investors so far. The fund was set up to target long-term investments in well-established Australian and New Zealand businesses with capacity to generate returns in varying economic conditions and hold market-leading positions in their sectors. Sectors to be targeted include technology, business services, healthcare, waste management, consumer staples and logistics.
In addition to its investment via the LTPC fund, UniSuper is taking about a 30% direct stake in PRP.
PRP operates 25 medical imaging centres, most in Sydney but also including NSW regional centres.
According to IFM, the business has a long-term track record of growth and is well positioned to meet increasing demand, particularly for preventive diagnostics, having invested heavily in technology and systems.
IFM and UniSuper were attracted to PRP by its patient-centric approach and anticipate supporting continuing growth of the business maintaining a leadership role in advanced clinical diagnostics, outstanding service levels and convenient, accessible care.
IFM Investors executive director private equity, Adrian Kerley, said PRP was a high-quality, well-run business with significant growth potential. “We are looking forward to ongoing collaboration with the doctors and management to support its next stage of growth,” he added.
UniSuper chief executive John Pearce said: “PRP is a great investment with a strong growth story which we anticipate will continue. It aligns with our strategy to invest in high quality assets for our members and adds to our growing$10 billion private markets portfolio. As genuine active long-term investors, we continue to look for sizable direct opportunities that enable our members to grow their retirement savings.”
PRP chief executive Paul Richard said the business looked forward to working with IFM Investors and UniSuper to exploit exciting growth and expansion opportunities.
IFM and UniSuper were advised by RBC Capital Markets, Allens, EY and KPMG on the binding transaction.
PRP is currently majority owned by Sydney private equity firm Crescent Capital which acquired a 75% stake for $440 million in 2020. Investment bank Morgan Stanley conducted an auction process over recent months. Prior to Crescent, a majority stake in PRP had been held by a group of ex-Macquarie executives including former Macquarie Bank chief executive Nicholas Moore.
Image: PRP Diagnostic Imaging has invested heavily in technology and systems.