StepStone Real Estate and Greykite have teamed up to acquire a majority stake in Spanish senior care provider Vitalia from CVC and Portobello Capital funds in a €1.5bn recapitalisation deal.
The partnership has agreed to acquire the interest in Vitalia from Vivaly Investments, a portfolio investment of CVC Fund VI and Portobello Capital Fund III, and commit over €500m in new growth capital.
Vivaly Investments and Vitalia’s founder and senior management team will both retain minority stakes in the company.
European real estate investment firm Greykite will be acting as the general partner on behalf of the shareholders, leading the day-to-day management of the investment.
The transaction is the tenth investment for StepStone Real Estate Partners V (SREP V), and its largest commitment so far. It also represents the eighth portfolio company investment for Greykite European Real Estate Fund I.
Vitalia, Spain’s second-largest senior care provider, currently operates 75 care home facilities and holds a 2.5% market share. With a secured development pipeline, the company is set to own and operate approximately 15,000 beds across Spain.
Josh Cleveland, co-founding partner and head of EMEA at StepStone Real Estate, said: “Deploying SREP V into opportunities like Vitalia demonstrates the strength of our strategy – recapitalising and supporting essential real estate businesses when traditional avenues for liquidity are constrained.
“With strong demographic tailwinds and limited new supply, Spain is a compelling growth market where we are making a broader push across our platform. We are excited to partner with Greykite, Vivaly Investments BV, and Vitalia’s management to drive the company’s next phase of expansion.”
Michael Abel, founder and CEO of Greykite, said: “We are pleased to partner with StepStone on our eighth investment strategy in Greykite Real Estate Fund I, which continues our focus on the thematically supported living, industrial and digital sectors. Spain, considered one of the best-performing economies in Europe, is a key market for us, as we continue to optimise our portfolio construction.
“Vitalia represents a compelling opportunity to invest in a scaled, asset-backed platform with a strong market position, in a sector with very compelling medium and long-term demographic-led growth drivers. This investment will build on our long-standing relationship with StepStone and we are excited to collaborate on this exceptional and rare growth opportunity.”
Chema Cosculluela, CEO of Vitalia, said: “I am excited to continue leading the company, together with my existing management team, and to work closely with our new shareholders.
“Their support and vision will help us build on our strong foundation, accelerate our growth, and unlock new opportunities for our customers, employees, and partners.”
Portobello Capital made its investment in Vitalia in November 2014, followed by CVC’s investment, which was announced in March 2017.
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