Under the terms of the agreement announced today, PEP will acquire the majority stake of Evolution currently owned by private institutional investors. The founders and senior management of Evolution will retain their existing shareholding.

Funds advised by PEP have a long track record of successful investment in New Zealand with former portfolio companies including Tegel, Griffin’s Foods and Guardian Healthcare, and currently have exposure to the healthcare sector via investments in iNova Pharmaceuticals and LifeHealthcare.

The investment in Evolution by the largest local private equity fund manager in the region will give the company improved access to capital to fund its significant growth and development plans for its New Zealand and Australian businesses.

The investment, which is subject to regulatory and other approvals, is expected to be completed by early 2019. The terms of the agreement are confidential.

Commenting on the deal, Andrew Savage, Executive Chairman of Evolution Healthcare Group said:

“This investment is excellent news for our company, our staff, our specialists and our patients because it supports our ambition to provide innovative and world class healthcare services across New Zealand and Australia.

“Importantly, the investment by PEP will give us access to the capital and support we need as we roll out our comprehensive development programme including the significant upgrade of Wakefield Hospital, the expansion of Royston, Bowen and Grace hospitals and of our allied health, oncology and mental health services.”

Ben Thynne, Managing Director of Evolution Healthcare Group added:

“PEP’s long-term investment approach aligns with our focus on providing the highest quality of care for our patients in the most advanced hospital facilities.

“The agreement will allow us to build our service offerings on both sides of the Tasman while maintaining the level of care and current range of services that our patients, staff, and partners value so highly.”