UniSuper, IFM buy majority stake in PRP Diagnostics

Asset manager IFM Investors and superannuation fund UniSuper have teamed up to acquire a majority interest in one of Australia’s leading diagnostic imaging providers, PRP Diagnostics, for an undisclosed sum.

This was the first deal for IFM’s Long Term Private Capital Fund (LTPC) which targets long-term investments across Australian and New Zealand healthcare, logistics, technology, and business services sectors, among others.

UniSuper would also take an approximately 30% direct co-investment stake alongside LTPC in addition to investing in LTPC.

IFM and UniSuper were advised by RBC Capital Markets, Allens, EY and KPMG.

“PRP is a great investment with a strong growth story which we anticipate will continue. It aligns with our strategy to invest in high quality assets for our members and adds to our growing $10 billion private markets portfolio,” said John Pearce, UniSuper chief investment officer. 

“As genuine active long-term investors, we continue to look for sizable direct opportunities that enable our members to grow their retirement savings.”

IFM Investors executive director, private equity, Adrian Kerley, also called PRP “a high-quality, well-run business with significant growth potential”.

The investment aimed to support PRP’s growth trajectory, expand geographical reach beyond its 25 practices in Sydney and across NSW, and improve its technology and systems. PRP Diagnostics was recently acquired by Crescent Capital in 2020 in a $440 million deal.