Financial details of the investment were not disclosed but Allegro Funds said this will be its fourth investment from Fund III and follows the firm’s recent investment in Australian hydraulics and water company Questas.
In a statement, Allegro Funds, which manages over A$1 billion ($690 million), said it signed a deal to invest in PRC, in partnership with the company’s existing doctor shareholders.
PRC was set up in 1948 and has more than 80 doctors. It provides diagnostic imaging services in public and private hospitals, specialist centres and suburban clinics across more than 20 sites in Perth.
Following the “significant investment” from Allegro Funds, the clinic will continue to operate via the partnership and service entity that services hospitals, specialist centres, and suburban clinics and will retain majority ownership by the doctors.
“This investment has been designed to maintain the best elements of the doctor and patient-centric service model blended with business expertise delivered through Allegro’s operating framework to enable the business to continue to attract and retain the best and most talented radiologists into the partnership,” the PE firm said.
Allegro managing director Chester Moynihan said, the firm had an existing relationship with PRC through its prior ownership of I-MED Network (an Allegro investment from 2011 to 2014), of which PRC was a subsidiary.
“Our focus will be to support PRC to continue to operate the business successfully, and to apply our transformation expertise to improve operational matters, invest in new equipment and capitalise on potential M&A and organic growth opportunities,” Moynihan said.
Allegro is an independently-owned Australian fund manager investing primarily in mid-market businesses within Australia and New Zealand.
Its current fund, Allegro Fund III, has approximately $400 million of committed capital. Other Fund III investments include New Zealand footwear retailer Ngahuia Group, which comprises Hannahs and Number One Shoes, and higher education provider Endeavour Learning Group.
The PE firm, which targets turnaround and distressed investments ranging from $10 million to $50 million in Australia and New Zealand, started its first fund in 2008 after being mandated as the manager for the $300-million ABN AMRO Capital Australia Fund II. It followed that up with the launch of its $180-million second fund in 2015.