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Stuart Gentle Publisher at Onrec

KCP invests £3.3m into healthcare staffing business

Sheffield-based temporary staffing business Hallam Medical (Hallam) has secured a £3.3m investment from private equity house Key Capital Partners (KCP)

Sheffield-based temporary staffing business Hallam Medical (Hallam) has secured a £3.3m investment from private equity house Key Capital Partners (KCP).

The business, which is focused on supplying the NHS and private healthcare providers in the primary care markets, is forecasting sales of £14 million in the year to April 2014.

Hallam currently employs 40 staff and deploys around 400 highly qualified nurses, largely Advanced Nurse Practitioners and community care specialists. The firm is headquartered in Sheffield and opened its London office in 2013 to enhance its offering to clients in the south of England.  

CEO Scott Davies and clinical director Alex Munro founded Hallam in 2007. Hallam engaged Jonathan Wright (JWM Ltd) as a non-executive director and strategic advisor in 2012 and during the last twelve months the company has significantly boosted its senior team with three highly experienced managers. This additional resource has had a positive impact on trading and the firm is looking to strengthen its team further with the appointment of a non-executive chairman shortly.

Davies said: “We are delighted to welcome KCP on board as a partner as we look to expand our business across the UK. KCP’s staffing industry expertise is second to none, and this was key in our decision in wanting them to be our funding partner. We look forward to working closely with the KCP team to execute our business plan.”

KCP investment partner Mike Fell and director Philip Duquenoy managed the transaction. As part of the investment, Philip will join Hallam’s board as a non-executive director.

Fell commented: “We very much look forward to working with the management team, who have transformed the company from a start-up into a profitable and cash generative business that is a market leader in the provision of highly qualified nursing staff to the primary care sector.

“With the shortage of senior NHS staff expected to worsen in the next five years, there is a huge opportunity for Hallam to grow rapidly. We are pleased to be part of the journey and will offer the support necessary to assist the team in building a valuable business in an attractive and growing sector.”

The principal advisers on the transaction were:

Commercial due diligence - Armstrong Transaction Services (Tom Raymond);
Financial due diligence - Beavis Morgan (Paul Smith)
Legal - Walker Morris (John Hamer), Nabarro (Ben Hendry)
Lead Advisory – Jonathan Wright Management Ltd (Jonathan Wright)