Care Management Group Limited

ISIS Equity Partners plc ("ISIS") has announced the completion of a £30m transaction to support the buy-out and expansion of Care Management Group. CMG, a Sunday Times Fast Track 100 company, is a leading provider of specialist residential care services for individuals with learning disabilities, challenging behaviour and associated mental health needs. The Company was established in 1996 and has since grown rapidly through a combination of organic and acquisition led growth. It currently operates 44 homes predominately in the South East of England, caring for 330 residents and recently acquired a specialist home in Essex catering for children with moderate to severe learning disabilities and complex needs. Current turnover is £16m.

In addition to supporting the buy-out, ISIS, alongside Barclays Leveraged Finance, has committed a significant sum to the ongoing growth plans of CMG, which are anticipated to include new developments and the acquisition of existing operators. This process is already underway, with the completion of the buy-out coinciding with the Company's first acquisition - the purchase of two properties in the Surrey area, which will be developed specifically for clients with challenging behaviour.

Michael Buckingham, Chief Executive of CMG, said: "CMG has grown as quickly as it has successfully in the six years that it has been trading. From the outset the Company has provided top quality care, delivered by well-skilled professionals, supported by the most effective documentation and training in the sector. I am absolutely delighted that extensive funding has been secured thus enabling the company to continue to grow and provide exemplary levels of care."

Liz Jones, who led the transaction with David Sherratt on behalf of ISIS Equity Partners, said: "From the outset we recognised CMG as a strong, professional operator that has built an excellent reputation in its market place. The Company operates in a market ripe for consolidation and we believe that CMG is extremely well placed to grow, given its well established infrastructure, solid customer relationships and absolute commitment to delivering high quality levels of care."

Adam Holloway, Head of Portfolio Management, will join the Board for ISIS.

Published: 11 April, 2003