Sovereign Capital completes two recapitalisations

Sovereign Capital, the UK private equity buy-and-build specialist, is pleased to announce the £37m recapitalisation of TRACSCARE Limited (TRACSCARE) and the £16m recapitalisation of Truecare Holdings Limited (Truecare). Both companies are dedicated to providing specialist care to adults with learning difficulties and mental health needs in the UK.

Sovereign has now recapitalised eight of the investments in its first fund, including the successful refinancing earlier this year of Alpha Plus Group, the second largest owner and manager of private schools and colleges in the UK, and Complete Group, the UK's leading provider of specialist care for young victims of complex injuries.

Sovereign Capital first invested in TRACSCARE in March 2004, through a £26m institutional buy-out (IBO). Since then TRACSCARE has experienced rapid and substantial organic and acquisitive growth and has taken over the management of Alkare, the specialist provider of residential care which Sovereign acquired through a £22m buy-out in March. Today the group operates 46 homes providing services for up to 250 clients - a 92% increase since 2004. New home openings are underway and further acquisitions anticipated.

Truecare was also acquired by Sovereign in March 2004 through a £15m buy-in/management buy-out (BIMBO). Since then it has grown to 12 residential homes which provide services to care for up to 98 clients with complex needs and challenging behaviour in Hampshire and the New Forest. Truecare has become the market leader in its region.

Commenting on the recapitalisations, Andrew Hayden, Partner, Sovereign Capital:

"TRACSCARE and Truecare have both achieved considerable growth since our original investments and they underline the success of a focused buy & build strategy. We continue to look for robust platform investment within our chosen sectors in addition to bolt-on investments for our portfolio companies."

TRACSCARE:

Funding for the recapitalisation was provided by Royal Bank of Scotland led by Sanjay Patel, Jennifer Murray and Felix Witte. 

Kevin Whittle managed the recapitalisation for Sovereign Capital. 

TRUECARE:

Funding was provided Allied Irish Bank, with Bill Toomey, Martin Cronin & Cyrenne Khaliq leading the transaction.

Kevin Whittle & Jose Rodriguez managed the recapitalisation for Sovereign Capital.