Exit of the Year – Mid Cap
(Equity commitment on entry – $50-149 million)

FV Hospital (Quadria Capital)

Quadria Capital exited Vietnam-based FV Hospital to Thomson Medical Group for an enterprise value of USD 377m in July 2023, generating a 2.6x return. It is said to be the largest-ever healthcare transaction in Vietnam. Quadria bought the company in 2017 and transformed it from a secondary hospital into the country’s leading tertiary care hospital, growing revenue and EBITDA by 15% and 19%, respectively, despite COVID-19. Value creation initiatives included creating centres of excellence in areas such as oncology, cardiology and gastroenterology, establishing various strategic partnerships, launching an in-house telemedicine service, and the bolt-on acquisition of American Chiropractic Clinic.

Medit (UCK Partners)

UCK Partners exited Medit, a Korea-based manufacturer of 3D dental scanners, to MBK Partners for an enterprise value of KRW 2.4trn (USD 1.88bn) in January 2023. The return was 5.7x. UCK acquired an approximately 50% stake in the company for KRW 180bn in 2019 and helped it become the global industry leader. Revenue and EBITDA grew 70% and 95%, respectively, on a compound annual basis. Value creation initiatives intellectual property expansion, upgrading sales and marketing capabilities, increasing production capacity, and enhancing quality control. UCK also made significant additions to management and ensured alignment of interest among stakeholders regarding strategic goals.

Quasar Medical (The Longreach Group)

The Longreach Group sold Quasar Medical, a Hong Kong-headquartered manufacturer of minimally invasive cardiovascular catheters, to Boyu Capital for an enterprise value of USD 660m in August 2023, generating a 7x return. During a four-year holding period, revenue and EBITDA each grew threefold, while the EBITDA margin rose from 15% to over 20%. Longreach transitioned the business from family ownership to professional management, tweaked the product mix and customer base – Japan entry was one part, US expansion was another – and sought to deepen and diversify relationships with existing blue-chip clients. It also extended the manufacturing footprint from China into Thailand.

SciClone Pharmaceuticals (CDH Investments)

CDH Investments completed its exit from Chinese drug developer SciClone Pharmaceuticals through public market sales in January 2023, taking advantage of a market rebound after pandemic-related restrictions were lifted in the mainland. CDH co-led a consortium that privatised the then-NASDAQ listed company in 2016. It contributed USD 63m to an equity pool of around USD 300m; the deal was supported by USD 220m in debt. SciClone’s product range and geographic focus were tightened ahead of a Hong Kong IPO in March 2021. CDH held 15.64% post-IPO and began selling down its position in December 2022. It generated a 2.7x return.

Up Education (Pacific Equity Partners)

Pacific Equity Partners (PEP) secured a full exit for its fifth Australia and New Zealand fund in July 2023 when vocational education business Up Education was transferred to a single-asset continuation fund for an enterprise value of AUD 613m (USD 390m). The return was 2.9x. The company was part of Academic Colleges Group, which PEP acquired for NZD 500m (USD 328m) in 2015. The larger K-12 education division was sold in 2019, enabling PEP to recover its principal. Up Education completed 12 bolt-on acquisitions, established more university partnerships, and created an online business, contributing to a threefold increase in EBITDA.