FRP secures debt funding package for Medicare investment

FRP Corporate Finance has arranged a debt funding package to support an investment by Bay Tree Private Equity in Medicare Insourcing Services, a clinical services provider.

The debt advisory team, led by partner Tom Cox, managed a competitive process to secure facilities from OakNorth Bank, tailored to the company’s cash-generative model.

The funding supports an investment by the private equity firm into the business, which partners with more than 50 NHS Trusts to provide additional clinical capacity.

Founded in 2018, the firm has provided services to more than 3m patients. The capital will assist the growth strategy of chief executive Scott Littlefield.

Littlefield will lead the company’s next phase alongside Stephen Collier, who has been appointed as chair to help scale the healthcare services provider.

This transaction follows previous collaborations between the firms on other healthcare sector acquisitions, building on an established relationship between the two organisations.

Cox said: “Medicare is a high-quality insourcing provider with strong clinical governance, advanced practitioner-led model, structural tailwinds supporting the delivery of clear public targets creating a compelling proposition for lenders.

“We were pleased to support Bay Tree and the management team at Medicare throughout the debt process to deliver a successful outcome.”

Edward Cottrell, partner at Bay Tree Private Equity, added: “Medicare operates in an attractive and growing segment of the UK healthcare market, providing essential additional capacity to the NHS.

“We’d like to thank Cox and the team at FRP Corporate Finance for their support in running an efficient and effective debt raise process. The FRP team’s support in delivering a tailored debt solution from OakNorth in a short timeframe was much valued.”