For Purpose Investment Partners (“FPIP”) is delighted to announce that it has signed agreements to acquire Victorian-based residential aged care provider Luson Aged Care and its three residential aged care facilities and development land (together, “Luson”) from Luson’s existing shareholders.
The acquisition will mark FPIP’s first investment into the aged care sector, which has been a key area of focus for FPIP since its inception in 2018. FPIP is focused on pursuing an aged care strategy that focuses on expanding accessible but affordable offerings in independent living through to residential aged care. Its mission is to develop a model of aged care that achieves excellent health and wellbeing outcomes for residents of all socioeconomic backgrounds, attracts top staff and enables residents to age in place with dignity and choice.
The business and assets acquired will be held by a recently incorporated not-for-profit entity FP Aged Care Australia Ltd (“FPACA”). Funds for the acquisition will come from FPIP’s Social Impact Fund I, FPACA board and management and senior lender NAB. Luson will be the third investment made from the Social Impact Fund I, following on from specialist disability accommodation provider BlueCHP Housing and NDIS meal-delivery business Able Foods.
Luson is a Victorian-based aged care provider, and owns and operates three residential aged care facilities, two in the Geelong region (Eden Park and The Vue) and one in Clyde North, south-east of Melbourne (Bloom). It is also the owner of a development site in Rowville with development approval for another residential aged care site. All three of the existing facilities have been either built or significantly refurbished in the past five years, and all contain single-bed ensuite rooms.
Discussions between FPIP and Luson’s existing shareholders commenced approximately six months, ago and came about as a result of the desire of the existing shareholders to find a new, values-aligned shareholder, with access to capital that would see the business through its next phase of growth, which most importantly will involve the development of the site at Rowville.
Nick Yannopoulos will remain in his role as CEO of the business, which will now also be overseen by a deeply experienced board including Chair Toby Hall (former CEO of St Vincent’s Health Australia and Mission Australia), Louise Greene (leading aged care consultant and former Quality Manager at Southern Cross Care), Matthew Filocamo (former General Manager, Residential Care at RSL LifeCare and Director of Operations at Calvary Health Care) and FPIP Executive Director Chris Yoo (Director of home care provider General Homecare).
There will be no disruption to residents or employees of the business during the transition of ownership, and the business will continue to operate under the Luson brand for the foreseeable future.
The transaction is contingent on receiving the necessary approvals from the Department of Health and Aged Care.
For Purpose Investment Partners Founder and Executive Director Michael Traill said “We are very excited to reach an agreement to acquire Luson, following what has been a multi-year process of looking at various aged care assets to find the right entry point for us into the sector. The aged care sector has had a really tough time over the past few years and we believe that investors like FPIP have an important role to play as stewards of these crucial social assets going forward, ensuring residents get a great experience at an affordable price while also making sure that the business is run in a manner that delivers appropriate risk-adjusted returns for investors and attracts further capital to a sector which badly needs it. The business is in great hands lead by Nick and supported by Toby as Chair, and we will look to support them to grow the business over the long term to create a leading for-purpose operator in the sector, in the mould of what Goodstart is for the early learning sector”.
Incoming FP Aged Care Australia Chair Toby Hall commented “We really like the Luson business and management team, and I’m excited to partner with Nick and FPIP to help build a leading for-purpose provider in the sector. It became clear during the early stages of our due diligence that while relatively small, Luson has the systems and clinical governance processes of a large aged care provider. The three existing facilities are well designed and with all single-bed ensuite rooms, are relevant for today’s aged care consumer”.
Luson CEO Nick Yannopoulos added “We are delighted to have found a new investor that shares the same focus on providing excellent health care outcomes for our residents, as well as providing growth capital to the business. FPIP and the new board members’ depth of experience and commitment to the aged care sector aligns with our vision and values. Our passionate and dedicated staff are looking forward to continuing the journey with FPIP, to provide the Luson experience to more residents who deserve the high level of care that we are intent on delivering every day.”
FPIP were advised by Gilbert + Tobin and PwC, while Luson and its shareholders were advised by Thomson Geer, Deloitte and Amicum.
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About Luson
Luson was started in 2015 as a family owned and operated aged care provider committed to creating a boutique environment that is inspiring and engaging, supporting residents’ independence with professional care and love. Luson’s philosophy is to put people first. By creating a culture that prioritises the needs of residents, their families and Luson’s employees, they can provide the highest standards of care for the greatest quality of life.
About For Purpose Investment Partners (FPIP)
For Purpose Investment Partners is a not-for-profit social impact investment manager, created to pursue an important mission; bringing private sector capital and capabilities into sizeable businesses and projects to create significant social impact.
Media contacts
Victoria Adams (Managing Director, For Purpose Investment Partners)
victoria.adams@fpinvest.com.au
0414 699 598
Toby Hall (Incoming Chair, FP Aged Care Australia)
0432 130 004
Nick Yannopoulos (CEO, Luson Aged Care)
0477 886 688
2 May 2024 - Leading Australian social impact investment fund manager For Purpose Investment Partners (FPIP) has acquired national meal delivery business Tender Loving Cuisine (TLC) through FP Ability Pty Ltd (FP Ability), its Disability Services platform. Primarily serving aged care customers accessing funding through Home Care Packages and the Commonwealth Home Support Programme, TLC complements FP Ability’s existing portfolio company, Able Foods. The strategic acquisition bolsters FP Ability’s presence in a growth market with quality products that support customer health and wellbeing.
FPIP Managing Director Victoria Adams said “We are excited to announce the acquisition of TLC. This represents an opportunity to grow the offering and impact of our meal platform with complementary companies that are focused on improving health outcomes and increasing choice for customers. With established operations and serving a customer base that includes seniors and people with disabilities, TLC is a highly values-aligned company that will continue to deliver strong outcomes into the future.”
Founded in 1995 by Jack Barker, TLC was established in Sydney and has expanded to national operations. TLC offers home-style, high-quality healthy meals delivered directly to customers and has steadily built a strong reputation and brand recognition.
Mr Barker reflected “for almost 30 years we’ve built a great business that supports people with a home-cooked meal when they can’t make it themselves. We’ve helped our customers as they recuperated following a hospital stay, or provided a service that meant people could better manage at home as they age. I am proud of what we have achieved, and I am confident that FP Ability is the right owner to take the business forward. I am excited about the opportunity that TLC now has under the FP Ability banner to grow and provide better access to healthy meals, including opportunities to work together with Able Foods.”
FP Ability is pursuing a goal of increasing access to high-quality, nutritious meals that will improve the health outcomes for vulnerable Australians including elderly people and people living with disabilities. TLC brings this goal closer with Able Foods, a business focused predominantly on serving National Disability Insurance Scheme (NDIS) customers with a growing presence in the Home Care Package market, acquired in December 2022.
Victoria explains, “We know that improved nutrition and choice leads to better health outcomes which supports wellbeing, independence, and an overall better quality of life for individuals. For almost 30 years now TLC have been making a positive impact for customers, we are proud to build on Jack’s legacy and increase our presence alongside Able Foods.”
Funding for the acquisition will come from FPIP’s Social Impact Fund I. FPIP was advised by Hamilton Locke and BDO, while TLC were advised by HWL Ebsworth and EP Advisors.
About For Purpose Investment Partners (FPIP)
For Purpose Investment Partners is a not-for-profit social impact investment manager, created to pursue an important mission; bringing private sector capital and capabilities into sizeable businesses and projects to create significant social impact. Established in 2018 by pioneering impact investor Michael Traill AM, FPIP have grown to have $185m of funds under management.
Media contact
Enquiries@fpinvest.com.au| 0405 306 414
24 April, 2024 - Leading Australian impact investment fund manager For Purpose Investment Partners (“For Purpose”) has announced a $75 million commitment from Qantas Superannuation Limited (“Qantas Super”) to its aged care platform. The funds from Qantas Super, one of Australia’s largest not-for-profit corporate super funds, represent the first major institutional commitment to For Purpose. Australia’s leading ethical investment fund manager, Australian Ethical Investment (AEF), has also made an initial $10 million commitment to the For Purpose aged care platform, with the potential for that to grow.
These commitments will enable the anticipated completion of a large-scale aged care acquisition. The acquisition will take the number of facilities owned by For Purpose’s not-for-profit aged care platform FP Aged Care Australia from four to nineteen, including development sites. Luson Aged Care, a wholly owned subsidiary of FP Aged Care Australia, will remain as the operator and approved provider of the facilities.
In addition to Qantas Super’s $75 million commitment, which is being led by Qantas Super’s Chief Investment Officer Andrew Spence, For Purpose manages almost $100 million committed from family offices, foundations, and high net worth individuals. It has just under $80 million is in its Social Impact Fund, which aims to drive institutionally appropriate risk weighted returns with measurable social purpose.
Alongside its existing $20 million investment in FP Aged Care Australia, For Purpose also manages investments in vocational education and training, specialist disability accommodation, and disability food services.
Mr Traill described the Qantas Super investment as a breakthrough for the aged care platform.
“The commitment of Qantas Super will enable us to significantly grow our platform in aged care, and hopefully together we can achieve our ambition of transforming the aged care sector. Andrew and his team backed our practical belief that the right way to drive attractive long term financial returns is to be very explicit about quality and measurable social impact,” he said.
“We have been very patient in building the right aged care team and platform led by Executive Chair Toby Hall, who has been key in driving this work and finding the right assets. Toby brings a depth of experience from his prior roles as CEO at Mission Australia and St Vincent's Health Australia, as well as being a founding colleague on the first board of Goodstart. That combination of accessing capital and operating critical human service sectors at ethical scale is vital.”
Mr Spence said that the commitment to For Purpose aligns with Qantas Super’s approach of partnering with best-in-class investment managers.
“We’re very open to backing early stage or first-time fund managers which has been a consistent source of value add for Qantas Super’s members. Our focus is on identifying a manager’s sustainable competitive advantage in terms of people, capability, alignment of interest, and a strong track record. Michael has assembled an outstanding team who share the twin passions of delivering attractive financial returns, which is our first priority, and a strong ethical focus. I can’t think of a more important combination in aged care.
“For us, it’s always about partnering with the right talent. With our team having worked very closely with the For Purpose team, we are confident our investment partnership is in good hands.”
Australian Ethical’s Chief Investment Officer Ludovic Theau said “we are delighted to partner with For Purpose to grow its aged care platform, delivering high quality services to residents, and offer appropriate risk-adjusted returns for investors.”
“We’re growing our investment in impact investing more broadly; we see strong alignment between For Purpose’s values and culture and Australian Ethical’s Investment Charter.”
The partnership through its focus on social impact reflects Qantas Super’s commitment to investing in environmental, social, and governance (ESG) themes, which is further supported by both partners in Qantas Super and For Purpose being not-for-profit fund managers.
“At Qantas Super, we believe ESG factors increasingly impact investment returns and risks and contribute to us delivering sustainable growth to our members,” Mr Spence said.
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Media contact
Enquiries@fpinvest.com.au | 0405 306 414
About For Purpose
For Purpose was founded in 2018 by leading impact investor Michael Traill and philanthropist and entrepreneur Mark Carnegie to focus on large-scale impact investing. Its approach is modelled on the precedent established by Goodstart Early Learning, which Mr Traill launched in 2010 and became one of the country’s most successful large scale social enterprises, and the largest provider of early learning and care. For more information, visit www.fpinvest.com.au
About Qantas Super
Qantas Super is one of Australia’s largest corporate super funds. It exists for people who are working for, or have worked for, the Qantas Group and their spouses. Qantas Super has been working for its members since 1939 and has over 26,000 members and approximately $8.5 billion in assets under management. For more information, visit www.qantassuper.com.au
About Australian Ethical
Australian Ethical is Australia’s leading ethical investment manager. Since 1986, Australian Ethical has provided investors with investment management products that align with their values and provide long-term risk adjusted returns. Investments are guided by the Australian Ethical charter which shapes its ethical approach and underpins both its culture and vision. Australian Ethical have over $9.0 billion in funds under management across managed funds and superannuation. For more information, visit www.australianethical.com.au
Highlights
· Established by For Purpose Investment Partners (FPIP), For Purpose Aged Care Australia (FPACA) is a not-for-profit aged care platform focused on achieving excellent health and wellbeing outcomes for residents and attracting and retaining quality staff.
· The acquisition will bring together aged care providers Luson and Signature Care under FPACA, led by Group CEO Matthew Filocamo.
· Backed by $85m commitment from institutional investors, FPACA will become a top-15 national aged care provider with this acquisition.
24 April 2024 - For Purpose Aged Care Australia (FPACA), owner of a leading not-for-profit aged care provider Luson, proudly announces the strategic acquisition of Signature Care, a provider of residential aged care services across Australia. This acquisition will see FPACA become a top-15 aged care provider in Australia with an initial 1,394 residential aged care places and increasing to over 2,500 places within two years across 18 sites in New South Wales, Victoria, Queensland, and Western Australia. Alongside this significant portfolio growth, FPACA is delighted to announce the appointment of Matthew Filocamo as Group CEO, commencing a new leadership era.
The FPACA Chair, Toby Hall, expressed enthusiastic support for both the acquisition and Matthew Filocamo's appointment, stating, "This is a transformative moment for FPACA and the broader aged care community in Australia. The acquisition of Signature Care is a strategic step that aligns with our mission to deliver exceptional care services to Australians from all backgrounds. We have demonstrated new and innovative ways of growing the sector to have a broader social impact that is customer centric. Matt and I have worked closely together with For Purpose Investment Partners for almost two years. Matt's experience and leadership in aged care make him the ideal leader to guide FPACA through this exciting next chapter."
With a mission to develop a model of aged care that achieves excellent health and wellbeing outcomes for residents of all socioeconomic backgrounds, FPACA's approach attracts top staff and enables residents to age in place with dignity and choice. This pivotal move, scheduled for completion on 1 June 2024, signifies a major advancement in FPACA's goal to improve aged care services nationally. FPACA currently own and operate Luson, a Victorian based aged care provider with three operational homes with 305 places and a further development site that would yield 136 places.
The acquisition of Signature Care merges the strengths and capabilities of both organisations, promising to enhance the care and services provided to older Australians and provide great benefits and conditions to staff. This partnership reflects a shared commitment to excellence and innovation in aged care.
FPACA was established by social impact investment manager FPIP. FPIP Founder and Executive Director Michael Traill AM said “We are very excited to reach an agreement to acquire Signature Care. We believe investors like FPIP have an important role to play as stewards of these crucial social assets going forward, ensuring residents get a great experience at an affordable price while also making sure that the business is run in a manner that delivers appropriate risk-adjusted returns for investors and attracts further capital to a sector which badly needs it. The business is in great hands led by Matt and supported by Toby as Chair, and we will look to support them to continue to grow the business."
Matthew Filocamo said "I am honoured and excited to lead FPACA into this new era. The partnership with Signature Care underscores our shared dedication to enhancing aged care in Australia. I look forward to driving our collective vision forward, fostering innovation, and making a meaningful impact on the lives of those we serve."
Signature Care Director, Amal Witnish, said “It has been a privilege over the past 3 years to develop the business to this point and make Signature Care what it is today, a leader in the provision of high-quality care and accommodation, with embedded IT, enabling person-centred care. FPACA and Luson, as not-for-profits, will provide additional incentives to attract and retain staff through salary packaging and other employment benefits and will ensure residents receive quality care by retaining and further advancing Signature Care’s innovation and investment in the sector.”
There will be no disruption to residents or employees of Signature Care’s and Luson’s businesses during the transition of ownership, and the businesses will continue to operate under their individual brands for the foreseeable future overseen by the Group CEO and Board.
The transaction is contingent on receiving the necessary approvals from the Department of Health and Aged Care. The parties were introduced by Amicum Pty Limited, FPIP were advised by Gilbert +Tobin and PwC, and Signature Care were advised by K&L Gates, Madgwicks Lawyers and Deloitte.
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About For Purpose Investment Partners (FPIP)
For Purpose Investment Partners is a not-for-profit social impact investment manager, created to pursue an important mission; bringing private sector capital and capabilities into sizeable businesses and projects to create significant social impact. Established in 2018 by pioneering impact investor Michael Traill AM, FPIP have grown to have $185m of funds under management.
Media contact
For interviews or background information please contact
Enquiries@fpinvest.com.au| 0405 306 414
For Purpose Investment Partners acknowledges and pays respect to the past, present and future Traditional Custodians and Elders of this nation and the continuation of cultural, spiritual and educational practices of Aboriginal and Torres Strait Islander people.
We believe that diversity, equity and inclusion at For Purpose Investment Partners are critical in our efforts to create significant social impact. Diversity in the team allows us to better represent the diversity of thought and experiences of the communities that we are aiming to serve, promotes a healthy and thriving working environment, and delivers innovative and sustainable outcomes for our communities, our people, our investors and our partners.
