Auckland firm exits healthcare business

Auckland private equity firm Waterman Capital has exited its stake in Canopy Healthcare Group to global alternative assets manager ICG (Intermediate Capital Group LSE: ICP).

The size of the transaction has not been disclosed.

Waterman said it had transformed Canopy since acquiring a majority stake in TRG Imaging in 2018.

In 2020, TRG Imaging acquired Canopy Cancer Care, New Zealand’s leading provider of medical oncology services. Canopy’s existing shareholders became shareholders in the combined group which took on the Canopy name. Canopy went on to purchase an 80% stake in drug compounding business iMIX.

The Canopy group, which was formed in the 1970s, today operates 19 diagnostic clinics, five oncology clinics, a breast cancer diagnostic and surgical centre plus the drug compounding business.

Waterman said that, under its ownership, the business doubled its annual revenues and increased the number of doctor shareholders from seven to 35. The private equity firm thanked other shareholders for their support and particularly the management team led by chief executive Tony Moffatt.

This is the fourth investment from the ICG Asia Pacific Fund IV which has a mandate to seek private equity-like returns with reduced volatility.

ICG’s head of Asia Pacific corporate, Hong Kong-based Wooseok Jun said: “Canopy is a market-leading platform providing a critical service with a highly compelling business model.” The business was well positioned to benefit from strong organic growth, he added.

ICG has made prior successful healthcare investments in the Australia and New Zealand market. Cura Day Hospitals was acquired from Archer Capital in March 2014 and exited to Germany-based Fresenius Medical Care in 2017. Everlight Radiology was acquired in 2016 and was exited to the Melbourne team of UK-based Livingbridge in 2021.

ICG provides flexible capital raising options across structured and private equity, private debt, real assets and credit.