February 28, 2019 Finance

RD Capital Partners, via its healthcare subsidiary RDCP Care, has acquired a leading elderly care group in Birmingham

RDCP Care has acquired the entire elderly care business of Birmingham-based elderly care operator Dignus Healthcare Group in a deal supported by an eight figure funding package structured by Allied Irish Bank (AIB)*.

Dignus Healthcare was formed in 2006, and since then has been providing award-winning support and care services for individuals with mental health conditions and learning disabilities. RDCP has acquired all four of Dignus Healthcare’s Midlands elderly care homes; Bearwood Nursing Home in Smethwick, Bartholamew Lodge Nursing Home in Wednesbury, Richmond Court Nursing Home and Caldene Rest Home both in West Bromwich.

Established in July 2015 by Sameer Rizvi and Iryna Dubylovska, RDCP Care is the care home management arm and subsidiary of London based investment firm, RD Capital Partners LLP. This acquisition forms part of RDCP Care’s continued growth strategy to expand their ownership of care and nursing homes, with the aim of becoming a top 20 UK care provider over the next decade. After this deal, RDCP Care now operate 6 nursing homes, have provision for 254 beds, and employ 272 staff members.

Sameer Rizvi, Managing Partner of RD Capital Partners LLP explains: “We were attracted to Dignus Healthcare homes in particular because of their urban Birmingham location, their close proximity to each other, their historically maintained ‘Good’ CQC rating and overall top quality of care. We are delighted to have finally completed this acquisition, after working on the deal for nearly a year. It will be business as usual for the employees and elderly residents, ensuring no business disruption of any nature.

Once again, we turned to AIB to assist with the funding for this acquisition, via the provision of a bespoke Senior and Mezzanine finance package. AIB, through the combined help of David Booth in the Manchester Business Banking team, as well as Izzy Kaler and Tudor Gheorghiu in the UK Mezzanine Finance team, have demonstrated that they really understand our business and vision. As a result, we have been able to acquire a Birmingham-based care home platform that triples the size of our business.”

AIB used their specialist knowledge and experience of the care sector to develop a funding structure which supports RDCP Care’s acquisition.

David Booth, Relationship Manager at AIB (GB) said: “Sameer and Iryna are extremely focused on growing RDCP Care and this latest acquisition is a perfect fit for the business expanding their presence in the Midlands. RDCP Care have built up a solid reputation for providing quality of care and excellent management and I am very pleased to help them achieve their growth ambitions.”

Izzy Kaler, Head of AIB’s UK Mezzanine Finance team said: “The UK Mezzanine Finance team is delighted to support an existing AIB customer with their expansion strategy. Healthcare is a key sector for our team and for the bank and we are keen to back strong and ambitious management teams such as Sameer and Iryna. We look forward to working with both of them over the coming years.”

*The AIB logo, Allied Irish Bank (GB) and Allied Irish Bank (GB) Savings Direct are trade marks used under licence by AIB Group (UK) p.l.c. incorporated in Northern Ireland. Registered Office 92 Ann Street, Belfast BT1 3HH. Registered Number NI018800. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

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