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Yorkville Asset Management is an independent investment boutique that is laser-focused on investing in the healthcare space

Snapshot

Unlike most institutional investors, the team at Yorkville – led by CEO Hussein Amad and managing director Ralph Desando – saw opportunities when it was established in 2010 for returns in the highly fragmented Canadian healthcare sector

Yorkville Asset Management Inc -
  • Independent investment boutique, established in 2010
  • Focused on investing in the healthcare space
  • Investee company Centric Health Corporation this year acquired pharmacy company Remedy Holdings Inc

What Yorkville Asset Management Inc does:

Yorkville Asset Management Inc. is an independent investment boutique, established in 2010, that has always been laser-focused on investing in the healthcare space.

Unlike most institutional investors, the team at Yorkville – led by CEO Hussein Amad and managing director Ralph Desando – saw opportunities then for returns in the highly fragmented Canadian healthcare sector.

Both Amad and Desando, who had a working relationship for about 15 years prior to Yorkville, decided to build a business to cater to ultra-high net worth clients, providing services both in the public and private markets.

Today the firm holds a number of funds, including a unique Health Care Fund that invests in healthcare-related businesses like long term care, institutional pharmacy and other ancillary health care silos.

Amad told Proactive in an interview earlier this year: “Healthcare is a non-discretionary sector. In Canada, the private market is very fragmented. Most areas needed massive investment and redevelopment, including institutional pharmacies.

“Unlike in the US or Europe, the healthcare sector in Canada is a sizable sector of the economy, but a big component of it is debt-financed. There is a disconnect between public markets and investors in the healthcare space. We saw opportunities to add value to our investors, add value to the system – and create a better future for our retirement!”

How is it doing:

In March, Yorkville Asset Management Inc investee company Centric Health Corporation (TSE:CHH) announced plans to acquire pharmacy company Remedy Holdings Inc, in a deal worth up to C$44 million.

The acquisition enhanced Centric’s position as a leading Canadian provider of specialty pharmacy services to seniors communities, serving over 50,000 residents in the country.

Toronto-based Centric also announced it has entered into a binding agreement with Yorkville and Crown Capital Partners Inc that sees the two firms assist Centric in refinancing its existing credit facilities and funding the cash closing price of the transaction.

Remedy Holdings and its specialty pharmacy business serves more than 18.500 residents in long-term care, assisted living and similar institutions across Ontario and Western Canada. The group posted revenue of nearly C$60 million for its 2019 fiscal year, according to Centric.

Under the terms of the deal, Centric entered into a share purchase agreement to acquire Remedy for up to C$44 million, $31 million of which is due on closing comprised of $8 million in cash and $23 million worth of Centric shares. An additional $8 million in deferred consideration will be split between a $4 million deferred consideration due 12 months following closing and another $4 million payable via a vendor take-back note due 18 months following closing.

The transaction also included an earn-out consideration of up to $5 million in cash if the company meets certain performance targets over the next two years.

What the boss says:

In an interview with Proactive, referring to the coronavirus pandemic, Yorkville Asset managing director Ralph Desando said: “The fact that we diversified our healthcare holdings to include additional silos has really prepared our fund and given our investors an even better position to move forward from this pandemic.

“A lot of the work we’ve been doing lately has been educating clients on the benefits of what Yorkville has done for healthcare and how we see the opportunities streaming from the pandemic in the future.”

Contact the author at jon.hopkins@proactiveinvestors.com

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