Private equity firm exploring exit from home care business

Malaysia-based private equity firm Navis Capital is reportedly in early talks to sell a home care brands company that has seen revenues grow sharply.

Navis Capital bought into the home care and disability services provider Caring Group in 2023 for $150 million and has pursued a strategy of scaling up alongside technology investment. Dementia Caring was added to the business when acquired within six months of Navis Capital’s involvement for $139 million.

Since being acquired, Caring Group’s revenues have grown sharply, from $200 million in FY23 (annualised), to $297 million in FY24 and $327 million last financial year, with operating earnings holding steady at about $10 million.

Staff numbers have increased significantly, rising from 791 to 1,811.

With 4,500 clients, 2,000 support workers, and more than 40 franchisees, Caring Group is now one of the largest home care operators in Australia. The operator has nine brands including Home Caring, Dementia Caring (listed as the sixth largest home care provider by Government funding according to KPMG), and Premier Care.

Discussions on the sale of Caring Group are said to be in the early stages, with a deal not expected before 2027.

Private equity investors have been drawn to Australia’s aged care sector by favourable demographics and stable, Government-backed revenue streams.

Stonepeak and Axight recently acquired Estia Health from Bain Capital. Opal HealthCare is owned by Pacific Equity Partners and Singapore’s GK Goh Holdings. Five Good Friends was purchased by private equity investors TPG and EQT. Dovida is owned by Switzerland-based Horizon Group, which is backed by private equity firm Ardian. Mable is also owned by General Electric.