Core invests 8.5 million to create a network of rehabilitation clinics

Core Capital invested €8.5 million in Moveclinics before subsequently acquiring the Costa Maia Group. The deal involves consolidating two regional rehabilitation clinic companies to create a national group with ambitions for growth.

Moveclinics has nine physical medicine and rehabilitation clinics in Greater Lisbon and the Costa Maia Group has four similar clinics (three in the North and one in Greater Lisbon).

This is Core Capital's eighth operation under the Banco de Fomento's Consolidar Program , and its second in the healthcare sector. The rules of this program, financed by the Recovery and Resilience Plan (RRP), require venture capitalists to subscribe to funds with a minimum endowment of €40 million each, with 30% of that amount required to be provided by private entities. The contribution from the Capitalization and Resilience Fund (FdCR), financed by the RRP, can range from €10 to €50 million.

"We transformed two regional groups into a national group, we kept the partners, Paulo Marques and Luís Cumbrera Tavares , who know the most about the business, we are the majority shareholders, but they maintain management , because we continue to believe that those who know how to do it should continue to do it," explained to ECO Martim Avillez Figueiredo, one of the partners at Core Capital, adding that Pedro Soares David, who is a senior partner at Core Capital, will join the board of Moveclinics.

The operation involved a "capital increase in the smaller company that subsequently acquired another with a very significant set of physiotherapy clinics to transform it into a national group," explained Martim Avillez Figueiredo, emphasizing that this is "a significant investment."

Consolidar rules do not allow company acquisitions to be financed by the FdCR, so venture capital invests in the capital of one company, which in turn acquires another. This creates productive capacity rather than transferring funds to the partners.

With this consolidation operation, Moveclinics now has 13 clinics—three in the North and ten in Greater Lisbon—with more than 300 employees and “the ambition to become one of the largest and most efficient national groups in the sector.”

Core's objective is to continue investing in Moveclinics, optimizing operations and expanding it nationwide , whether "through acquisition or organically," Martim Avillez Figueiredo emphasized, without wanting to reveal the goals they intend to achieve, as it is not yet the right time.

With this new investment, Core has already invested 57.7% of the €60 million it has under Consolidar. By December 31st, the venture capital firm will have to invest the remaining €25.34 million. Martim Avillez Figueiredo reveals that Core has "four deals in due diligence ." "It will be our money, which is greater than the amount we have to invest" from the RRP under Consolidar, he revealed, admitting the possibility of seeking investors if necessary. "We will meet the targets and perhaps even exceed them," he assured.

The Consolidar program, which has an allocation of 529.68 million euros (a value revised upwards compared to the initial 500 million), has 99.4% of this amount committed to venture capital and 64.3% has already been paid to the 52 companies that are final beneficiaries (342.71 million euros, as of October 10).