Australia's Quadrant exits Virtus Health, Summerset

The Australian private equity firm was expected to retain about 10% of Virtus, which would have put the offering at up to A$291 million, but it is believed to have exited the entire holding. The shares were priced at A$5.68 apiece, the top end of the indicative range. Quadrant owned around 43% of Virtus alongside a group of medical professionals.

It is the biggest private equity-backed IPO in Australia since Pacific Equity Partners-backed KFC franchisor Collins Food raised A$201 million in 2011. New share sales in the country have now raised A$578 million so far this year, the most since 2007.

Quadrant completed a management buyout of New South Wales-based IVF Australia, the country's largest group of dedicated fertility specialists, in 2008. There were subsequently two bolt-on acquisitions - Victoria-based Melbourne IVF and Queensland Fertility Group - and the combined entity was renamed Virtus Health.

The private equity firm claims to have invested a total of A$83.7 million.

Quadrant has also sold 30.7 million shares of Summerset at A$2.90 apiece for a total consideration of A$89.2 million. According to a regulatory filing, the firm has reduced its holding from 37.4% to 22.7%.

Quadrant first invested A$90.5 million in Summerset in 2008 after then owner AMP Capital Investors failed to take the company public a year earlier. The private equity firm then bought a further 50% from AMP in 2010.

Summerset listed in October 2011, allowing Quadrant to make a partial exit. February marked the end of the lock-up period during which the PE firm had to keep its majority stake and in March it reduced its holding from 55.8% to 37.4%.

Both Virtus and Summerset were investments from Quadrant Private Equity No.2, a A$500 million fund that closed in 2007. The firm's third fund reached a final close of A$750 million in 2010, exceeding its target of A$600 million.

 

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• Topics
• Australasia
• Healthcare
• Exits
• Buyout
• Australia
• Quadrant Private Equity
• healthcare
• Exit
• IPO