Intermediate Capital Group is carrying out a single-asset secondaries process on one of Europe’s largest care-home groups, Secondaries Investor has learned.
The London-headquartered alternatives manager is moving DomusVi out of its 2014-vintage buyout fund ICG Europe VI into a continuation vehicle as part of a process worth around €800 million in net asset value, according to two sources with knowledge of the deal.
Founder of the business Yves Journel is rolling all or most of his stake into the new vehicle, according to one of the sources. Lazard is understood to be advising on the deal, which gives DomusVi an enterprise value of around €2 billion.
Journel partnered with ICG to acquire a majority stake in the business from PAI Partners in 2017. It is not clear how much Journel owns in total.
DomusVi runs 417 care homes with more than 40,000 beds across France, Spain, Portugal, the Netherlands, Ireland and Latin America, according to its website.
The company has come under pressure in Spain over the condition of one of its care homes during the coronavirus crisis, according to newspaper El Mundo.
“Care homes have tended to be good PE investments but it does come with potential reputational risk,” said one buyer who had looked at the deal, adding that the coronavirus crisis has placed greater scrutiny on private ownership of healthcare assets.
ICG Europe VI closed on €3 billion by final close in 2016 with commitments from limited partners including New York State Teachers’ Retirement System, Pennsylvania Public School Employees’ Retirement System and Tasplan Super, according to PEI data.
ICG did not respond to a request for comment. Lazard declined to comment.