EXITED IN 2016: Healthcare I – a portfolio of Finnish healthcare assets.
Healthcare I was a pioneer fund in its asset class in the Nordics and was launched at the end of 2007 with the intent to invest into care homes in Finland. At the time, private equity real estate investments into healthcare were only just emerging with Healthcare I being the first institutional fund in the market. The fund was backed by six leading Finnish institutional investors.
The total equity of Healthcare I was EUR 60 million with an investment capacity of EUR 120 million post 50% leverage. The portfolio was compiled over a four year period from 2008 to 2011 through mainly forward funding/purchase deals. All 27 assets were built and completed between 2006-2012 in accordance with modern nursing home standards. The assets were located all across Finland with the largest concentration in the bigger urban areas. As part of the strategy, all assets were let on long-term net leases to a diversified base of private operators and municipal tenants. As a testament to the strategy’s success, the portfolio was able to maintain a constant occupancy of 100% throughout the lifetime of the fund.
Once fully invested in 2012, the fund consistently paid out 8-10% dividends p.a. to its investors. The full portfolio was sold in February 2016 for €155 million to Finnish-based eQ. At the time of exit, the Fund had generated a net IRR of 10.5% and a 1.9x equity multiple to its investors, exceeding the initial targets set in 2007 by a comfortable margin.
|KEY FUND FEATURES|
|Fund name||EPI Healthcare I Ky|
|Investment profile||Invested in properties used by the healthcare sector in Finland|
|Fund type||Closed-end, unlisted|
|Legal structure||Finnish limited partnership|
|Fund manager||Jussi Rouhento & Andreas Michelsson|
|Fund administrator||Northern Horizon Capital Oy|