RDCP gears up to launch second fund

RDCP Healthcare Opportunities Fund II will target £50m, to deploy on care homes as well as specialist care assets in the UK.

Managing partner Sameer Rizvi said the firm hopes to raise institutional money for the vehicle. The partners are currently tapping their own network of investors in the UK, EU and the Middle East, but expect to hire a placement agent to help fundraise "sooner rather than later", he said.

"The fundraising environment is a little tough right now due to Brexit, so conversations are not as sticky as they should be, but that will change with the political circumstances," said Rizvi.
Founded in 2015 by Rizvi and another former investment banker, Iryna Dubylovska, RDCP had previously acquired six UK care homes with around 250 beds, including a deal for Dignus Healthcare Group, announced this month.

It has consolidated them into the RDCP Care group, which has been independently valued at £30m, Rizvi said. The holding company constitutes the entire portfolio of the sponsor's first fund, RDCP Healthcare Opportunities Fund I, now effectively a family office vehicle as Rizvi and Dubylovska have bought out the limited partners.

RD will soon announce an £18m deal for four UK care homes agreed in January, as it grows its portfolio of UK care providers to 10 homes and could place its latest acquisition into either the first or second fund, depending on the speed and success of fundraising. Rizvi's preference is for the asset to go into the second, but fund one's RDCP Care could finance the acquisition through a combination of balance sheet and existing debt facilities if needed, he said.

RDCP is targeting a portfolio skewed towards private pay, but Rizvi did not rule out acquiring either local or private pay homes. One must look at the local funding and competitive environment when evaluating each asset, he said, as even the typically more profitable private pay homes will struggle to find enough wealthy clients in the wrong locations.

RDCP has acquired its existing stock from investors that wanted out of the industry or retiring entrepreneurs. Those type of vendors often sell small portfolios for below market prices, Rizvi said.

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• Topics
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