Perth’s largest private diagnostic imaging provider, Perth Radiological Clinic (PRC) has agreed terms with Australian private equity fund manager Allegro Funds inviting them to lead a minority investment in PRC in partnership with the existing doctors.
The PRC partnership was established in 1948 and is Australia’s largest private partner radiology business with more than 80 doctors (partners and employed associates). The PRC doctors are supported by excellent and dedicated staff operating at twenty sites in Perth.
Most importantly, the business will continue to be majority doctor owned and controlled. It will operate via the existing partnership and service entity that services hospitals (public and private), specialist centres and suburban clinics and will retain majority ownership by the doctors.
PRC will continue to offer a complete and integrated range of radiology services including MRI, CT, US, plain films, interventional procedures and nuclear imaging. This investment has been designed to maintain the best elements of the doctor and patient centric service model blended with business expertise delivered through Allegro’s operating framework to enable the business to continue to attract and retain the best and most talented radiologists into the partnership.
The exciting thing about this venture is that Allegro and PRC will be able to work together to leverage off each other’s expertise. Allegro have expertise in helping to create resilient and agile businesses through organisational restructuring, IT and system process improvements, looking for better ways of working. For this transaction, Allegro has taken a minority stake and assembled a consortium of Limited Partners comprising First State Super (FSS) and the Accident Compensation Corporation of New Zealand (ACC) as cornerstone investors.
PRC Chairman, Dr Martin Blake, said “Developing the Allegro relationship combined with a unique doctor ownership model and the calibre of the major superannuation institutional co-investors were the factors that resulted in us selecting Allegro as our partner for the next stage of growth and reform. We are excited to be working with the Allegro team to drive the next phase of transformation with a partner who understands our business and the opportunities available, in a structure where there is complete alignment of interest. We are privileged to provide services in Perth, and we look forward to extending our service offerings”
Enquiries: Dr Martin Blake, PRC Chairman, firstname.lastname@example.org
Media Enquiries Paul Tierney, Porter Thomas, +61 415 900 891 or email@example.com
Allegro Funds Pty Ltd: Allegro is an independently owned Australian fund manager investing primarily in mid-market businesses within Australia and New Zealand. Allegro specialises in transformational capital, applying capital, expertise and a distinctly hands-on approach to investing in businesses requiring transformation. Allegro has managed more than A$1 billion FUM since 2008 and is currently investing from Allegro Fund III, which has ~$400 million in committed capital from local and international investors including large Australian and New Zealand superannuation funds, institutions and family offices.
First State Super is one of the largest not-for-profit superannuation funds in Australia. It was initially established in 1992 and now serves over 800,000 members in the teaching, health and allied care, emergency services and public sectors, primarily in NSW and Victoria. As of 30 June 2018, FSS managed a combined asset pool of over A$90 billion across a wide range of publicly listed und private investments. FSS has a focus on investing in ways that have a positive impact on the economy, the environment and the communities in which our members live, work and retire. The investment into PRC continues FSS’s track record of investing into health care and related sectors with investments already made into Bendigo Hospital, Sunshine Coast University Hospital, Oak Tree Retirement Villages and the NSW Ambulance and Police Helicopters Training and Services Facility.
The Accident Compensation Corporation (“ACC”) is a Crown Entity established to deliver New Zealand’s accident insurance scheme. The scheme provides comprehensive, no-fault, personal injury cover for New Zealand residents and overseas visitors. ACC manages an investment vehicle aimed at supporting the welfare of the New Zealand people. Its investment portfolio exists to ensure that the scheme can meet all the future costs of injuries that have already happened, without the need for New Zealanders to pay more levies for these claims in the future. ACC is one of New Zealand’s largest fund managers, with over NZ $40 billion under management, as at June 30, 2018.