Ignite makes maiden investment with Cornerstone MBI

Kenny Wastell
25 September 2018

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Ignite Growth has completed its maiden investment with the acquisition of Cornerstone Healthcare Group, a UK-based operator of specialist care homes, from the company's founding family.

Financial details of the transaction remain undisclosed, though Ignite invests £2-15m in businesses valued at up to £30m.

The GP was founded towards the end of 2016 by former GI Partners director Forbes Stuart and former Inflexion Private Equity investment partner Andrew Leek. It is currently investing on a deal-by-deal basis, with Kvika Securities providing part of the equity for the Cornerstone deal.

Cornerstone will pursue an acquisitive growth strategy with the GP, with a particular focus on targeting businesses that provide specialist care to patients with neuro-degenerative illnesses and mental health issues coupled with challenging behaviour.

The GP has introduced Johann van Zyl as CEO, and Dara Ní Ghadhra as chief operating officer, both of whom led the development of neurological care and treatment business PJ Care. It has also introduced NHS Professionals chair and former BMI Healthcare CEO Stephen Collier as chairperson.

Debt
Metro Bank and Alpha Real provided a debt package to support the transaction.

Company
Founded in 1998, Cornerstone operates two nursing homes in Hampshire, from where it provides care to elderly people with complex mental and physical health problems including late-stage dementia, mental illness and Huntington's disease. Across its two locations it has a total of 154 beds.

People
Ignite Growth – Forbes Stuart, Andrew Leek (partners).
Cornerstone Healthcare Group – Johann van Zyl (CEO); Dara Ní Ghadhra (chief operating officer).

Advisers
Equity – Alantra (corporate finance); Cushman Wakefield (property due diligence); Knight Frank (property due diligence); Trowers & Hamlins (legal); BDO (financial due diligence, tax); Armstrong Transaction Services (commercial due diligence); Andy Johnston Associates (operational due diligence, compliance due diligence).
Management – EMW Law (legal).