Sovereign Capital announces the £26 million institutional buy-out of TRACS

Sovereign Capital Limited ("Sovereign Capital"), the independent mid-market UK private equity provider, announces that it has completed the £26m institutional buy-out of TRACS Limited, a leading group of UK specialist residential care homes for adults with Mental Health needs.

Sovereign has supplied funds to support the IBO and to finance the buy & build and roll-out strategy. A first potential acquisition for TRACS has already been identified. Bank of Scotland Specialist Property Finance has provided debt for the IBO.

TRACS provides services for over 130 clients in 21 residential homes in South Wales and the Midlands. The group employs over 250 staff that provides a range of therapies and support to treat clients with complex needs which include autism and Acquired Brain Injury. In addition, TRACS has earned the reputation for being a leader in the field of *dual diagnosis. The group benefits from a national spread of referrers, many of whom recognise the shortage of specialist residential resources focused upon Mental Health.

Sovereign Capital has recruited a first-rate management team to develop TRACS which is led by Eric Millard, CEO, previously MD of Florence Nightingale Hospitals. Val Owen joins as FD, having formerly been with Time Products. Sue Hullin who has been with TRACS for over 10 years, retains the role of Service Director.

This is the 6^th investment Sovereign Capital has made in the health and social care sector in the last 2 years consolidating Sovereign's position as the **leading private equity investor in this sector. In January this year, Sovereign Capital led the £12.5m IBO of adult residential care homes group Orchard End Group. Recent investments also include PCS and SENAD, both focusing on the provision of care and education to children with special needs, and Complete Group, which provides specialist homecare for adults with spinal injury.

Dominic Dalli, Assistant Director, Sovereign Capital commented:

"TRACS is a first class operator in this specialist market and offers residents high quality care across a range of needs. The acquisition of TRACS builds upon Sovereign's track record in the sector and demonstrates our continuing commitment to health and social care. TRACS' expertise in ABI and Mental Health complements Sovereign's interest in this sector."

Eric Millard, commented:

"TRACS is an outstanding specialist care group and I am delighted to be leading the management team into the new phase of the group's development. It has an excellent reputation and I believe that we will be able to build upon the success the group has achieved to date. As demonstrated by the recent Mental Health Bill, the Government is placing increasing emphasis on mental health services in the community and this is positive news for TRACS."