Graphite weighs Compass Fostering exit advised by Harris Williams

Macquarie was previously appointed on the sellside, but Harris Williams' managing director Julian Feneley brought the mandate over with him when he joined the firm in December 2021, said the sources.

Compass Fostering, which provides children fostering services in the UK, generates GBP 20m EBITDA, said two of the sources. Graphite acquired the business from August Equity in 2017, at which time its EBITDA stood at GBP 10m, one of these sources added.

The process is not expected to launch soon, two of the sources said, citing the pulled sale process of Outcomes First Group (OFG) and a general downturn in the children’s services space.

The sector is struggling to attract buyers' attention at the moment, apart from experienced investors, said one of the sources, although adding that fostering is counter-cyclical so ongoing recruitment problems in the sector are likely to improve in a recession.

Compass recruits and trains foster carers working with local authorities to match them with children in need, according to its website. Compass is ranked the third largest independent fostering agency in the UK, the same information reads.

Graphite Capital and Harris Williams did not respond to requests for comment. Compass Fostering could not be reached for comment at the time of publication.

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• Topics
• Exits
• Healthcare
• UK / Ireland
• Graphite Capital