Barclays Private Equity (BPE) has sold its 40% stake in CareTech Holdings back to the management team, making an IRR of 34.8% on its three year investment.
BPE bought its share in August 2002 from 3i and other shareholders for £8m as part of a total deal worth over £35m. Under Barclay’s watch, CareTech, a UK provider of residential care and support for people with learning disabilities, expanded from 254 to 435 beds and currently operates 61 care homes and 2 day care centres. It also increased its turnover from £13.4m to £18.2m for the year ended September 2004.
BPE achieved a partial exit in August last year, as well as receiving a full repayment of its original investment, when the company completed a £28m sale and leaseback.