August Equity sells Healthcare Homes Group to Bowmark for £75m

Bowmark is investing £35m of equity funding for a majority stake in the company. The company's management is rolling over a 'significant proportion' of its sale proceeds alongside Bowmark, according to a statement.

Healthcare Homes provides nursing, residential and day-care services to the elderly and also younger adults with physical disabilities in East Anglia.

August Equity (then Kleinwort Capital) originally invested in HHG in August 2005, when the group consisted of four homes and 100 beds. Under August Equity's ownership, the business expanded to more than 800 beds and 200 day-care spaces across 21 homes.

In February 2008, HHG acquired care and nursing home Manorcourt Care. The acquisition was the eighth acquisition made by HHG since August Equity's investment in the company.

Philip Rattle, the August Equity partner who leads the healthcare team, said, 'The growth of the group has been impressive over the past three years and the team has continued to ensure that the highest standards of care are offered to the residents of the homes.'

This is the first investment from Bowmark's latest fund, Bowmark Capital Partners IV, which closed on £265m in January 2008.

HHG CEO Richard Clough and Bowmark have worked together before, on investments including disability care provider The Regard Partnership, drug and alcohol testing services group Medscreen and Care UK, the health and social care provider.

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