Clearwater is a provider of high quality residential care facilities and supported living services for people with learning disabilities aged between 18 and 65.

The Business currently operates from 25 freehold properties located predominately within the Greater London area. Synova Capital’s initial acquisition of Clearwater Care has since been supported by further capital to grow the company both organically and by acquisition of further properties.

Synova’s investment provided a liquidity event for the founding shareholders while also supporting the management buy-in with Non-Executive Chairman, Martyn Ward, remaining in his role alongside the buy-in team, which is led by Philip Arden. Clearwater has recruited additional senior professionals to the management team and delivered a significant number of operational improvements.

INVESTMENT CASE

Clearwater Care, formerly a subsidiary of Hallmark Care, is one of the South East’s leading providers of high quality residential care and supported living services for people with profound learning disabilities and complex needs. Synova’s acquisition of Clearwater, alongside a buy-in team, allowed Hallmark’s shareholders to realise the proceeds of a disposal of a non-core asset in order to focus on their primary market, elderly care.

KEY FACTS

  • 150Residents
  • 25Properties
  • 93%Average Occupancy
  • Sector:
    Healthcare
  • Investment date:
    September 2009
  • Exit date:
    Nov 2017

PHIL ARDEN
CEO – Clearwater Care
“I thoroughly enjoyed working with Synova who demonstrated a detailed understanding of our Business. Their strategic vision and operational discipline have been instrumental in the development of the Group and leave Clearwater well positioned to grow in a market looking for bespoke solutions for adults with complex Learning Disabilities.”

GROWTH STRATEGY

Key attractions for Synova in acquiring Clearwater included the sector dynamics, particularly with a growing need for the provision of long-term high quality care packages to vulnerable people with complex needs; the geographic focus on London, which has historically suffered from an under provision of services; Local Authorities’ ambitions to repatriate back into their own boroughs; and the ability of a fresh but proven management team to grow the business organically and through taking advantage of accretive acquisition opportunities.

EXIT

Synova instituted a trade buyer engagment programme during our period of ownership; we successfully exited Clearwater to Salutem Healthcare following a targeted and highly competitive auction process.