Major investment organisation signposts aged care focus with latest takeover

For Purpose Investment Partners (FPIP) has signposted its intent to rapidly rise through the ranks of Australia’s aged care sector after announcing its acquisition of Signature Care. 

The strategic acquisition of Signature Care will see its 14 aged care homes fall under the ownership of FPIP’s not-for-profit aged care platform For Purpose Aged Care Australia (FPACA). FPACA already operates three homes through Luson.

Key points

• Graeme Croft founded Signature Care in 1984, expanding its operations across Victoria, New South Wales, Queensland and Western Australia
• In 2023 Mr Croft revealed his ambitions for 2,2000 operational beds by 2026, essentially doubling Signature Care’s size within three years
• FPACA acquired Luson, a self-described boutique Victorian residential aged care provider, and its 305 operational beds in 2023
• The acquisition announcement was paired with the announcement of a new Group CEO, former Operations Director at Calvary Health Care and RSL Lifecare, Matthew Filocamo 

FPACA Chair Toby Hall has previously expressed his desire to expand to 5,000 beds with this acquisition placing them halfway to the goal once ongoing developments are completed within the next two years.

The sudden growth of FPACA will result in the organisation becoming a top-15 national aged care provider – once the deal is approved by the Department of Health and Aged Care – with Mr Hall sharing his enthusiasm over the latest moves. 

“This is a transformative moment for FPACA and the broader aged care community in Australia. The acquisition of Signature Care is a strategic step that aligns with our mission to deliver exceptional care services to Australians from all backgrounds,” he said.

“We have demonstrated new and innovative ways of growing the sector to have a broader social impact that is customer-centric. Matt and I have worked closely together with For Purpose Investment Partners for almost two years. Matt’s experience and leadership in aged care make him the ideal leader to guide FPACA through this exciting next chapter.”

For Signature Care, the deal is seen as an opportunity to strengthen its investment in the sector, particularly for employee benefits and care outcomes. 

“It has been a privilege over the past 3 years to develop the business to this point and make Signature Care what it is today, a leader in the provision of high-quality care and accommodation, with embedded IT, enabling person-centred care,” Signature Care Director Amal Witnish said.

“FPACA and Luson, as not-for-profits, will provide additional incentives to attract and retain staff through salary packaging and other employment benefits and will ensure residents receive quality care by retaining and further advancing Signature Care’s innovation and investment in the sector.”

FPACA’s rapid advancement into the aged care sector through Luson and Signature Care is not the only example of its connections within the industry. Former FPIP Executive Director Andrew Thorburn was recently appointed CEO of HammondCare. However, he has no ongoing ties to the investment organisation.

Speaking of investment, FPIP Founder and Executive Director Michael Traill AM said the agreement is a positive sign that aged care can attract much-needed investment after years of being viewed as a cold market.

“We believe investors like FPIP have an important role to play as stewards of these crucial social assets going forward, ensuring residents get a great experience at an affordable price while also making sure that the business is run in a manner that delivers appropriate risk-adjusted returns for investors and attracts further capital to a sector which badly needs it,” Mr Traill said.

There will be no disruption to residents or employees of Signature Care’s and Luson’s businesses during the ownership transition, while current developments by both providers will be completed. Each one will operate under its individual brands for the foreseeable future overseen by the Mr Filocamo and the FPIP Board.