Bain Capital’s staggering aged care valuation of Estia Health
Two years on from its acquisition of Estia Health, Bain Capital is seeking to capitalise on the growing demand for residential aged care.
US private equity giant Bain Capital is lining up meetings with more than a dozen fund managers, as it explores options for Estia Health – with a reported $2 billion price tag on the aged care operator.
Bain acquired Estia for $838 million in December 2023, and sources suggest an Initial Public Offering (IPO) is under active consideration following Bain’s successful listing of Virgin Australia earlier this year. However, a sale also remains on the table, according to AFR’s Street Talk.
To weigh its options, Bain has appointed Barrenjoey Capital Partners and Gresham as advisers, while UBS is tipped to manage the IPO if it proceeds.
The timing is markedly different from Bain’s entry two years ago, which came in the shadow of the COVID-19 pandemic and the Aged Care Royal Commission. Today, the sector is buoyed by new regulatory stability under the Aged Care Act, improved funding settings, and the long-term demographic tailwinds of an ageing population.
At the time of the acquisition, CEO Sean Bilton said Estia was “a consolidator” in a fragmented market – noting that 70% of aged care providers operate just one or two homes and face rising compliance burdens under reform.
Since then, Estia’s expansion has been rapid. The group has grown from 73 homes at acquisition to 94 today, following the purchase of Vacenti Aged Care’s seven homes in Brisbane last month, Mark Moran Group’s Little Bay and Warrawee homes in June, and Aurrum Aged Care’s seven homes in April.
In December 2024, Estia also secured $300 million in mezzanine financing from Nomura Securities, backed by major infrastructure investors Keppel Infrastructure, Stonepeak, and Pacific Equity Partners – a clear sign that institutional capital is returning to aged care.
