NSSK sells Japan nursing care business
Japanese mid-market buyout firm NSSK has secured a partial exit from nursing care provider Vati through a sale of the business to an investor group that includes Neuberger Berman.
NSSK acquired Vati in 2016 through its second fund, which closed a year later with JPY60 billion ($531 million) in commitments. The private equity firm is said to have paid around JPY6 billion for a 100% stake. It has agreed to reinvest in Vati as part of the Neuberger Berman deal. The size of the transaction was not disclosed.
Founded in 2002, Vati currently operates 144 nursing care facilities located in the outskirts of the Tokyo greater metropolitan area as well as in some second-tier cities. It provides homes customized for the elderly with daycare services as well as residential nursing homes. The company claims to be the eighth-largest player in the industry by number of facilities.
NSSK’s objectives on acquiring the business included the professionalization of systems and management, building relationships with local hospitals, and developing a regional expansion plan. Under the new ownership, this expansion will continue, alongside initiatives such as the bringing new technology into facilities and implementing environmental, social and governance protocols.
Vati is positioned as an affordable option in a market that is experiencing steady growth driven by Japan’s aging population. According to official statistics, 28.1% of the country’s 126.4 million inhabitants were aged 65 and above in 2018, up from 17.4% in 2000. This percentage is projected to reach 38.1% by 2060.
Several private equity firms have leveraged this trend by investing in aged care services. J-Star bolted together two core nursing assets to from a hospice care platform – Japan Hospice Holdings – that went public last year. Also in 2019, CVC Capital Partners sold Hitowa Holdings, a provider of residential and in-home nursing services as part of a broader outsourced services portfolio, to Polaris Private Equity.
More on North Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.