In July 2008, we invested £6.1 million of development capital in Raphael Healthcare, a provider of specialist mental health services for women, in a deal that valued the company at £30 million.
We were attracted to Raphael’s highly specialist and unique market offering, strong recent growth and market leading clinical reputation.
Raphael Healthcare was established in Runcorn, Cheshire in 2004 by Chief Executive Arthur Robinson, a former psychiatric and general nurse and onetime NHS Trust Director of Mental Health, and Chairman John Lamb, a healthcare entrepreneur.The company opened its first 30 bed hospital, The Farndon Unit, in Newark, Nottinghamshire in 2006.
Following RJD’s investment, The Farndon Unit was developed to 46 beds, and includes a rehabilitation ward and low security accommodation. Raphael is now a preferred supplier to Primary Care Trusts in the East Midlands, West Midlands, Barnsley (covering North Yorkshire, York and Barnsley) and Somerset.
Raphael recently gained planning approval to develop a 24 bed eating disorder unit at its Briars Hey site in Rainhill, Merseyside. The new unit will create 59 jobs.
The management team, with its unique blend of NHS and private sector experience, has created a specialist, high quality service offering that addresses an important and growing niche in the mental health sector.
RJD realised its investment in Raphael through a refinancing funded by new debt facilities provided by the Bank of Ireland in combination with funds from the management team and the company’s cash reserves in February 2012. RJD received proceeds of £9.1 million, delivering a return to RJD of 1.5x its original investment. RJD has re-invested part of its return in a mezzanine loan note investment.
Raphael was the third realisation from RJD’s second fund, RJD Private Equity Fund Il.
To discuss Raphael Healthcare in more detail, please contact John Dillon.