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
The FP Ability board is pleased to announce that Spencer Ratliff has been appointed as CEO of Tender Loving Cuisine (TLC), while maintaining his current role as CEO of Able Foods. This strategic decision underscores our commitment to strengthening both businesses while preserving their unique identities in the meal delivery sector.
"Having witnessed Spencer's exceptional leadership at Able Foods, we are confident that his appointment will drive innovation and growth across both brands," said Paul Robertson, Chair of FP Ability. "His track record of building client-focused businesses and navigating change makes him ideally suited for this expanded role."
Spencer Ratliff shared his vision for the future, "Both organisations share a unified mission: to deliver exceptional services and outcomes for their clients, driven by their expertise and deep specialisation in the market.
"I’m thrilled to lead TLC into its next chapter of growth, building on its 30-year legacy of outstanding service in the disability and aged care sectors. My priority is to collaborate closely with the team to explore opportunities that harness the strengths of both businesses while preserving their distinct brand identities."
Spencer added, "This common foundation will enable growth that is firmly focused on our clients.”
Spencer will be working with the board, stakeholders and suppliers to identify opportunities for mutual growth and learning between both organisations.
Paul concluded, "This appointment represents a significant step forward in our growth strategy. We're confident that under Spencer's purpose-driven leadership, both TLC and Able Foods will continue to excel in delivering exceptional meals and customer service to our valued clients."
Keypoints
- Both TLC and Able Foods will maintain their distinct brands and current operations
- A comprehensive strategic plan will be developed through collaboration with staff, senior management, customers, board members, and suppliers
- Knowledge and expertise will be shared across both businesses to enhance operations and service delivery.
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About FP Ability
An investment platform by For Purpose Investment Partners, FP Ability is committed to removing obstacles for people who require support, with a focus on people living with disabilities, their families, and older Australians. Nutrition is vital to people’s good health and wellbeing, and for customers of Able Foods and Tender Loving Cuisine (TLC), their services support choice and independence. Our aim is to improve the quality of services, for the elderly and Australians living with a disability, and address food insecurity in these sectors.
Able Foods
Able Foods mission is to enable healthier, happier and more independent lives for each and every ability. Its dedicated team understands what it means to create meals that cater for each client’s unique needs. Through years of experience, they assist clients to best manage both the NDIS and Aged Care (HCP) processes.
Tender Loving Cuisine
TLC offers customers high quality frozen ready-to-eat meals that are home delivered. With a focus on supporting older people maintain independence at home and supporting health outcomes, many clients access government funded support.
29 October 2024 - For Purpose Investment Partners (FPIP) has released its Impact Report 2024. A leading social impact investment fund manager, FPIP voluntarily reports information about its approach to impact measurement and the performance of portfolio companies and projects. With a commitment to deliver financial value and social impact without compromise, FPIP are pursuing a broader ambition to establish social impact investments as a viable asset class for large-scale transactions across the Australian market.
Michael Traill, Executive Director said “Publishing transparent and accountable information in our Impact Report 2024 is a demonstration of our thought leadership in impact investing. We believe transparent reporting is a factor in building the understanding and assurance amongst investors to unlock significant amounts of capital that can transform the social sector.”
Mr Traill, who chaired the Federal Government’s Social Impact Investing TaskForce, further explains, “Ultimately, we need to get to scale to tackle the sector-wide transformation that is needed in areas including aged care, disability, education and housing. Institutional investors need to know that impact fund managers are transparent, accountable and creating value. Proofpoints like our annual Impact Report, are part of the assurance that investors require.”
Additionally, FPIP were one of the first Australian signatories to the Operating Principles for Impact Management (OPIM) and were independently assessed by BlueMark against these principles.
Ben Smith, Head of Impact Investing at the Paul Ramsay Foundation says "As early backers of FPIP, we are pleased to see the organisation's progress and second impact report publication. FPIP's inclusion of third-party assurance creates the comfort that impact investors seek. We know from global practice that transparency and impact integrity are key ingredients to establish confidence and progress markets."
Mr Traill continues “Our values and commitment to transparency led us to seek external verification that provides investors with confidence that we have been benchmarked and tested to a global standard.”
“We are focused on continuous improvement and this was evidenced by a lift in ratings across three of the eight principles this year. As a team we will continue to work in close partnership with our investees to increase our collective impact. We are demonstrating Australian impact to a global standard.”
The Impact Report 2024 is available here.
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Michael Traill, Executive Director and co-founder of For Purpose Investment Partners is interviewed on the latest With Purpose podcast by David Knowles. The episode overview is 'Michael Traill AM made his name at Macquarie Bank as a successful private equity investor, before jumping ship to foster social entrepreneurship in Australia as founder of Social Ventures Australia. This journey led him to the field of impact investing, a field in which he is now acknowledged as a pioneering leader and elder statesman. Today, Michael is Executive Director of For Purpose Investment Partners and Chair of the Paul Ramsay Foundation. In this episode, Michael reflects on what he has learnt during his career, and shares unique insights in relation to investing, leading, governing and tackling a wide variety of social issues.’
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.
