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3i to generate 61 per cent IRR on Care Principles exit30/07/2007. Source: AltAssets. 
 3i has agreed to sell Care Principles, a UK specialist care provider for adults with learning disabilities and behavioural challenges, to The Delta Fund, to which Three Delta provides corporate finance advisory services. The transaction is valued at £270m.
3i partner Mike Turner said, 'We have worked with an excellent management team over the life of our investment and I would also like to pay tribute to the founders of the business. This transaction delivers us 3.9 times money multiple and an IRR of 61 per cent over the entire ten-year life of the investment.'
3i has been an investor in Care Principles since 1997, when a team of managers from General Healthcare approached 3i to help them build and run medium secure hospitals throughout the UK. 3i invested £1.5m at the time for a 38 per cent stake in the business and has worked alongside the business since then.
In 2005, the founders decided to sell their stake in the business, giving 3i the opportunity to re-invest in the business and support a buy-out.
The company now has over 380 occupied beds and employs more than 1,500 staff, providing assessment, treatment, care and rehabilitation for adults requiring long-term therapy and treatment for learning disabilities and mental health problems. The majority of patients are sectioned under the UK Mental Health Act and receive rehabilitation through a combination of nurses and carers with a typical staff to patient ratio of four to one. The average length of stay at a home for an individual is approximately four years.
3i's other investments in the healthcare services sector have included nursing home operator Westminster Healthcare, and Castlebeck, Caretech and Milbury (Paragon), other healthcare providers for adults with learning difficulties.
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