Another infrastructure investor is said to be lining up for Pacific Equity Partners’ Evolution Healthcare hospital business – the Dutch Infrastructure Fund.
DIF Capital Partners, as it is known, is no stranger to the Australian and New Zealand market, having lined up in a number of sales processes, and is set to compete for the NZ hospital business with the Queensland Investment
Corp-owned Nexus Hospitals and Canadian pension fund Ontario Teacher’s Pension Plan.
DIF last year considered buying Engie’s Willogoleche Wind Farm in South Australia and the John Laing Australian renewable energy portfolio that was up for sale.
It has €9bn of assets under management across nine closed-end infrastructure funds.
The sales process for Evolution Healthcare is due to be underway through Stanton Road Partners.
Evolution Healthcare has about five private hospitals in New Zealand and a number of day surgeries. It was bought by private equity fund PEP in 2019 for about $300m. PEP describes the business as a leading provider of private hospitals, with the Wakefield Hospital in Wellington its most valuable asset.
A sale of Evolution, which counts former Virtus Health boss Sue Channon as its chief executive, has been on the agenda since early this year.
The sale by PEP comes after it recently purchased the Healthe Care Australian portfolio of hospitals for about $400m.
Interest from infrastructure funds demonstrates how such groups are becoming focused on opportunities in the healthcare space, attracted to their low risk profile and infrastructure like qualities.
The funds are cashed up amid a low interest rate environment and have a cheaper cost of capital than private equity.
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