Erisbeg, a private equity firm located in Dublin whose co-founder is former Blackstone executive Alan Kerr, is progressing towards launching a second fund after its preliminary portfolio successfully sold one of its first investments, say insiders. An approximately €60 million sale has been made with 98% stakeholder Medray Group, a health-care equipment and services provider, to LDC, a private equity investor which is an arm of Lloyds Banking Group.
In 2019, Erisbeg’s initial investment was in the Medray and the company was used as a launching asset in its pioneering fund, successfully concluding in 2022 with €110 million worth of investments. The primary support for the fund comes from European institutional investors, with AIB committing €10 million. Medray, now a lead supplier of X-ray and CT scanning apparatus in the healthcare, veterinary and dental markets across Britain and Ireland, has absorbed five businesses during its tenure with Erisbeg.
Currently, it caters to approximately 2,700 clients and maintains a workforce of 120, divided between the Dublin base and a distribution hub in Hemel Hampstead, situated 40km northwest of London. Medray’s management team is spearheaded by CEO Siobhán Crowley and is one of five divisions created with the forerunning fund by Erisbeg. This fund has an investment scope of about 75% and has marked Medray’s sale as the first investment to exit.
The company saw Erisbeg partner Robert Burns as a board member. The predicted net proceeds of nearly €40 million from the sale, after deduction of company debts and fees, will be distributed amongst the fund investors, an expected return of 3.5 times on the initial investment.
Crowley announced that the requirement for imaging gear is on the rise, due to mounting regulatory obligations as well as a need for healthcare providers to carry out screenings for chronic diseases and assist an ever-aging population.
It has been proposed that some key investments, including Dixon International Transport which later incorporated Carna Transport when under Erisbeg’s ownership, and commercial property design group, ORS, might be considered for sale in the foreseeable future. Unnamed sources have indicated that Erisbeg is currently prepping for a larger second fund which may reach preliminary closure by the start of next year.