The AFR’s rumour mill section, Street Talk, is reporting that independent investment bank, Moelis & Company, is seeking buyers for one of the country’s biggest home care providers, KinCare – and has spent the past few weeks courting potential buyers into a two-stage auction.
Street Talk reporters say they understand that Moelis is calling for first round bids this week and that contenders include turnaround specialist Allegro Funds, mid-market new-comer Adamantem Capital (which owns shares in NZ operator, Heritage Lifecare) and experienced health sector asset owner Crescent Capital.
Moelis also has its own interests.
According to Moelis Australia’s annual report, one of its funds, Moelis Australia KinCare Fund, had a 25.48 per cent stake in KinCare and was buying units in the company as recently as November. Moelis Australia is also one of the investors in the KinCare fund.
And as we reported here, the bank was already heavily involved in the sector when it was eyeing off Kincare in 2017 – having paid paid $45.4 million for a 70% majority in aged care provider Infinite Care and established the Moelis Australia Healthcare REIT, offering third-party investors the opportunity to co-invest.
The following month, Moelis also increased its shareholding in Japara from 6.1% to 9.96% for roughly $53 million.