Bhanu Choudhrie is an award-winning entrepreneur and the founder and director of C&C Alpha Group. The international private equity firm believes in the value of long-term investment over quick exits. C&C Alpha Group’s extended investment periods allow the firm to thoroughly support and grow companies, helping them achieve their maximum potential.
Alpha Hospitals is a prime example of the success this long-term strategy can achieve. C&C Alpha Group spent 13 years incubating and scaling the specialist mental healthcare provider before selling it for £95 million in 2015. Almost a decade on from the sale, here’s a look back at the Alpha Hospitals success story.
An introduction to C&C Alpha Group
Bhanu Choudhrie founded C&C Alpha Group in 2002. His expertise in sourcing deals in areas like China, India, and the Asia-Pacific region led C&C Alpha Group to become an early investor in emerging markets. The firm also sponsored the Emerging Markets Symposium at Oxford University for several years.
Today, C&C Alpha Group has an international footprint, with a presence in the UK, the U.S., the United Arab Emirates (UAE), and India. Under Bhanu Choudhrie’s leadership, the team analyses global economic trends and identifies companies in market niches poised for growth.
Additionally, Bhanu Choudhrie advises on investment strategy to ensure C&C Alpha Group’s companies reach their financial and operational potential. Thanks to his careful guidance, the firm has established its reputation as a leader in the private equity space.
C&C Alpha Group has a diverse portfolio that encompasses several sectors, including healthcare, banking, hospitality, real estate, aviation, and utilities. The firm created Alpha Utilities, which is now the Middle East’s leading small-scale desalination technology company.
C&C Alpha Group’s investment criteria
When considering investment opportunities, C&C Alpha Group prioritises several key factors. Firstly, the firm seeks out companies with a strong management team, recognising that effective leadership is crucial for long-term success.
C&C Alpha Group also focuses on companies with the potential to leverage the firm’s international and cross-industry expertise. The firm realises its investments’ growth potential by identifying synergies that optimise its team’s strengths in incubating and building business value. C&C Alpha Group’s investment focus typically ranges from £2–40 million per transaction, with a typical enterprise value of £10–100 million.
Previous success stories
C&C Alpha Group’s predecessors laid the groundwork for its success. They played pivotal roles as seed capital providers for the online travel agency Ebookers. A NASDAQ and London Stock Exchange-listed company, Ebookers is now part of the Expedia Group of travel brands. Cendant Corporation acquired Ebookers for $450 million in 2004.
Another of C&C Alpha Group’s success stories includes its investment in Air Deccan, India’s first low-cost airline. Air Deccan eventually became an Indian National Stock Exchange-listed company with a market capitalisation of $500 million. Kingfisher acquired the airline in 2007.
Bhanu Choudhrie’s impact: the Alpha Hospitals success story
Alpha Hospitals is a case study in innovative private equity and entrepreneurship. Initially conceived as an idea discussed around the kitchen table, Alpha Hospitals emerged as a foremost provider of specialist psychiatric care through Bhanu Choudhrie’s investment.
Bhanu Choudhrie helped establish Alpha Hospitals and was a board member from the outset. He oversaw C&C Alpha Group’s incubation of the company, ensuring its steady growth for over a decade.
A prominent player in the UK’s mental health services space, Alpha Hospitals employed more than 1,000 staff across its three sites in Sheffield, Bury, and Woking. These sites offered exceptional services for children and adolescents and low- and medium-secure services.
Additionally, Alpha Hospitals’ sites featured a range of specialist services, including a highly specialised service catering to deaf individuals with a mental illness.
The sale to Cygnet Health Care
13 years after launching Alpha Hospitals, C&C Alpha Group sold the enterprise to Cygnet Health Care for £95 million. The acquisition brought 305 additional beds across Alpha Hospitals’ sites into the Cygnet family, growing Cygnet’s UK footprint from 17 to 20 mental health facilities.
Law firm Trowers & Hamlins advised C&C Alpha Group on the Alpha Hospitals sale. Tim Nye, the firm’s corporate partner and care specialist, emphasised that C&C Alpha Group had collaborated with Alpha Hospitals’ management teams to develop ‘an exceptional business.’
At the time of the sale, Cygnet’s then-CEO David Cole highlighted Alpha Hospitals’ ‘pedigree’ and ‘excellent reputation in the sector.’ He noted that, like Cygnet, Alpha Hospitals was a brand that characterised ‘quality and confidence’ and boasted strong customer relationships.
Five key takeaways from the Alpha Hospitals case study
Here are five key takeaways from the Alpha Hospitals case study for investors who are interested in the healthcare sector:
Finding untapped healthcare opportunities. C&C Alpha Group identified an untapped niche within the healthcare industry. By focusing on psychiatric care, Alpha Hospitals positioned itself as a major player in this underdeveloped space.
Taking a long-term approach. C&C Alpha Group’s 13-year involvement with Alpha Hospitals underscores the need for a long-term vision in healthcare investments. Achieving a successful exit in the healthcare sector often requires patience, and the willingness to weather challenges.
Prioritising quality patient care. A commitment to delivering high-quality patient care drove Alpha Hospitals’ success. Prioritising patient outcomes is central to the operational success of any healthcare investment strategy.
Making social and healthcare impact. Bhanu Choudhrie’s stewardship of Alpha Hospitals illustrates the potential for private equity investments to drive positive change in the social and healthcare sectors. Beyond financial gains, investors can contribute to improving healthcare access, quality, and outcomes for patients and communities.
Impactful exits are possible. The £95 million sale of Alpha Hospitals should reassure investors that it’s possible to achieve a strong exit in the UK healthcare sector despite increased competition.
C&C Alpha Group’s other healthcare sector investments
The Office of National Statistics (ONS) forecasts that by 2028, the number of UK residents aged 65 and over will increase by 80% (from 11 million in 2023 to nearly 20 million). This increase is likely to radically alter the landscape of the UK’s care industry, putting extra pressure on an already overstretched system.
The ageing baby-boomer generation could mean an increasing demand for premium and specialist services in the UK and globally. Recognising the significant potential for growth in elderly patient care in the coming years, C&C Alpha Group has added Alpha Health Care to its portfolio.
A single-site facility in the UK, Alpha Health Care specialises in providing complex dementia care for the elderly. The asset has become a local leader in specialist dementia care, establishing a healthy business model and platform for continued growth.
C&C Alpha Group believes in the importance of developing international healthcare ventures that can help meet the growing demand for specialist elderly services. The firm continues to seek promising, niche healthcare opportunities in the UK and abroad.
About Bhanu Choudhrie
Bhanu Choudhrie studied International Business and Marketing at Boston University and has completed the Owner / Management Programme at Harvard Business School. In 2008, he received the ‘Entrepreneur of the Year’ award at the UK’s Asian Voice Political and Public Life Awards.
Bhanu Choudhrie brings this careful investment approach to C&C Alpha Group. Typically, the firm acts as an incubator for emerging companies. However, C&C Alpha Group also provides capital and management expertise to mature companies looking to scale or restructure operations.
