Advent Private Capital

November 2009
Market Update
	As the dust settles in the aftermath of the global financial crisis, a clearer picture is emerging from the turbulence: a back-to-basics approach is the order of the day for many private equity funds with managers focusing on improving the operations of portfolio companies, building strategic assets and positioning businesses for exit when the market re-opens. In the volatile post-crisis environment there have been few private equity transactions of note along with a dormant market for new stock market listings; many managers have taken the opportunity to enhance the businesses in which they have invested. Recently however, several large private equity backed businesses have also been down the IPO path - pointing to a possible recovery in the exit arena.

New Investments

	In these challenging circumstances, Advent is pleased to have finalised three excellent investments in the past 15 months. The first two of the recent Advent investments: Integrated Packaging and Trivantage Group are both very stable businesses. They have in common excellent management teams, modest external borrowings, and superior financial performance. Trivantage Group (formerly SJ Electric Group) recently completed a corporate rebranding exercise to mark the significance of its new position in its markets. Following investment from Advent V, Integrated Packaging finalized a significant acquisition. We will talk a little more about these two investments in our next newsletter. The most recent addition to the portfolio, Genesis Care is a national network of cardiology and radiation oncology practices. In many respects a recession-proof industry, health care is a resilient and growing sector and one in which Advent has a strong track record.

Introducing - Genesis Care
	Australia's largest and best equipped privately owned specialist healthcare company


	Six of Australia's leading cardiology and cancer care practices and an experienced management team have joined forces with Advent Private Capital to create Genesis Care, a national provider of cardiology services as well as radiation oncology services. The challenging fields of cardiology (the diagnosis and treatment of heart disease) and oncology (the treatment of cancer) - address the two largest health problems in Australia today with cancer and coronary disease accounting for approximately 65% of all cause mortality and a staggering 20% of total national health expenditure.

	Genesis Care operates cardiology practices in Qld, Vic, SA and WA and also has radiation oncology practices in NSW and SA. With over 450 staff, the company employs more than 70 doctors, working at over 50 locations - ranging from the major state capital cities to regional centres. The Genesis Care medical team comprises some of Australia's best known and most experienced specialists in cardiac and cancer treatment, including specialists trained at prestigious medical centres such as the Mayo and Cleveland Clinics in the United States. The practices had previously been part of the I-Med network of diagnostic and specialist treatment centres. Genesis Care purchased the business from I-Med, with additional capital set aside for a further expansion of the new company.
	A different model
	The Genesis Care model is different to similar models for private specialist healthcare services, with the doctors not only owning a majority of the company's shares but retaining responsibility for the management of all local clinical matters. Some Genesis Care doctors also spend time as consultants in the public hospital system, seeing public patients or teaching, with a lot of that time spent in regional centres. Both the executives and the doctors rolled their equity into the new structure, with a syndicated debt package and Advent's investment funding the remainder of the acquisition. The Advent V fund invested $36.6million and committed a further $12.0million to help fund the expansion strategy. The Board of Genesis Care is chaired by David Vaux, a former executive Chairman and Managing Director of the DCA Group. Advent Managing Director, Rupert Harrington and Advent Investment Director, Mark Jago have joined the Genesis Care board. They will be supporting the expansion strategy for the business, which includes organic growth as well as acquisitions. Advent enjoys an excellent track record of investment in the health sector. Past successes include Primary Healthcare - Australia's leading medical centre operator and healthcare services provider, which listed on the ASX in 1998, Cochlear - a world leader in hearing devices, and Benchmark Private Hospital Group - a privately-owned private hospital operator.

Sector Outlook
	As the financial sector slowly emerges from hibernation, we are identifying a strengthening market for the fundamentals of private equity investment. Australian businesses will continue to seek capital to fund generational change, expansion into new markets or the acquisition of competitors; these opportunities are universal and will need to be satisfied irrespective of the vagaries of the economic scene.


	Advent Private Capital is a private equity group investing in profitable, middle market private companies with enterprise values of up to $200 million. Former investees include Primary Health Care Limited, Taverner Hotel Group, Ayers Rock Resort, Vision Systems Australia, ACIL, Gale Pacific Limited, The Tesa Group and Sleepmaster
	For further information contact us on (03) 9690 9566 or enquiry@adventpc.com.au

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