Polaris buys Japan care home operator
Polaris Capital Group has agreed to acquire a majority stake in Social Inclu, a Tokyo-based operator of more than 150 group homes for people with disabilities. The size of the investment was not disclosed.
The private equity firm is currently deploying its fifth fund, which closed at the end of 2021 on JPY 150bn (USD 1.1bn) – twice the size of its 2016 vintage predecessor. The plan is to back at least 10 companies with enterprise values in the JPY 11bn-JPY 74bn range.
Founded by Tomonari Watanabe, who continues to serve as president and CEO, Social Inclu claims to be the only company offering all-day group homes at a national level. It launched the concept in 2018 with a view to accepting people with severe disabilities.
“While the demand for all-day group homes has risen due to the ageing of caregiving family members and increasing the number of dual-income households, the shortage of suitable group homes continues and only less than 1% of people with severe disabilities in Japan live in an all-day group home,” Polaris said in a statement.
The GP will help Social Inclu expand its network of group homes and prepare for an IPO. Polaris has extensive experience across healthcare and nursing care. Earlier this year, it acquired Welloff Group, which provides housing for the aged, runs pharmacies, and offers services such as outpatient and home-visit day care, home care support, and home-visit nursing and medical care.
Other relevant portfolio companies include Sogo Medical Holdings, a pharmacy chain operator and B2B healthcare management platform, and Hitowa Holdings, which provides residential and in-home nursing.
In addition to new investments, Polaris has announced three exits since the start of the year: salon operator Factory Japan Group was sold to Japan-China Capital Partners; energy infrastructure support business Tokico System Solutions went to Iwatani Corporation; and Aimechatec, a supplier of LCD panel manufacturing equipment, was exited through several block trades.
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