Operators. Advisers. Shareholders.
Case studies
- Residential Care
- Alternative Education
- Healthcare
- Specialist Property
R2 Management Group provides management advice in sectors defined by non-discretionary demand, strong regulation, and structural supply shortages. In many businesses we work with, we may also take equity, and we stay involved to grow them to build out long-term value.
What we look for
We typically work with businesses that pass three tests. People need the service whatever the economy does.1 A regulator decides who may provide it.2 And there is less of it than the country needs.3
- 1
Non-discretionary demand
A placement in care, a specialist school place or a course of treatment is made because someone needs it, and it is mostly paid for by a local authority or the NHS. Volumes do not follow consumer confidence.
- 2
Strong regulation
Registration with Ofsted or the CQC, regular inspection and staffing standards keep weak operators out. A good inspection record is an asset in its own right, and we manage it as one.
- 3
Structural supply shortage
In each of our sectors, demand has outgrown the places available, and new capacity takes years to plan, build and register. Well-run providers stay full.
Four case studies where the state is the customer, the regulator, or both.
-
Residential Care
Children's homes and adult care services. Placements are commissioned mainly by local authorities, often at short notice and with few alternatives.
- Regulator
- Ofsted, CQC
- Paid by
- Local authorities
-
Alternative Education
Schools and provision for pupils who cannot attend mainstream school, including those with special educational needs.
- Regulator
- Ofsted, DfE
- Paid by
- Local authorities, schools
-
Healthcare
Community and specialist health services delivered under NHS contracts and to private patients.
- Regulator
- CQC
- Paid by
- NHS, private patients
-
Specialist Property
Buildings designed for care, education and supported living, let on long leases to registered operators.
- Tenants
- Registered operators
- Income
- Long-lease rent
How we work
We find the business, test it, fund it, then help run it.
-
01
Origination
We look for well-run, owner-led businesses, often before they are offered for sale, through operators, advisers and commissioners we know.
-
02
Due diligence
We test the accounts, the contracts and the regulatory record, including inspection history, safeguarding, staffing and the condition of the buildings.
-
03
Deployment of capital
We invest as a minority or majority shareholder, or acquire outright, on terms built around the business plan rather than a standard structure.
-
04Ongoing
Active management
We work inside the business on occupancy, staffing, commissioner relationships and compliance, with growth in EBITDA as the measure.
When we take equity, we are paid when you are.
Many of our mandates combine a management role with a shareholding or joint venture. Our advice and our returns depend on the same results as yours, so we stay accountable for them.
Three ways to work with us.
The structure follows what the business and its owners need. An advisory mandate can later include an equity stake, and some partnerships end in a full acquisition.
| Model | Management & advisory | Equity partnership | Acquisition |
|---|---|---|---|
| Our capital | None | Minority or majority stake | We buy the business |
| Our role | We support or lead operations, compliance and growth planning alongside your team. | The same work, as a shareholder with a seat on the board. | We own and manage the business, keeping the leadership team in place where it is working. |
| Suits | Owners who want management depth without selling. | Founders who want capital and support, and want to stay invested. | Owners ready to step back, and portfolios coming to market. |
| How we are paid | Fees | Reduced fees and the return on our shares | The return on the business |
Let’s talk business.
Tell us about the business, what it does and who pays for its services. We read every introduction and reply to those that fit what we look for.
We hear from
- Owners and operators
- Corporate finance advisers and brokers
- Local authority commissioners
- Co-investors and lenders
Thank you.
Your message has reached us. If the business fits what we look for, a partner will be in touch by email.