MA Financial secures $20 million gain as aged care fund delivers 2.8x returns
MA Financial Group (ASX: MAF) has signed an agreement to sell Infinite Care to Anglicare Sydney for an undisclosed sum, delivering investors in the MA Aged Care Fund a return in excess of 2.8x their initial invested capital. The transaction, expected to complete in 1H26 subject to customary approvals, will generate an approximate $20 million gain on MA Financial’s co-investment plus a performance fee linked to the fund’s strong performance.
The MA Financial Aged Care Fund Sale represents a successful exit from the aged care sector, with Infinite Care being the sole asset of MA Aged Care Fund 2. The realised gain will be treated as a one-off significant item in the Group’s FY26 underlying earnings, adding to the positive guidance commentary provided at MA Financial’s recent FY25 result announcement. Cash generated from both the co-investment realisation and performance fee will be recycled into growth initiatives.
Key transaction outcomes include:
- Sale of Infinite Care to Anglicare Sydney (ACS Aged Care Holdings Pty. Ltd.)
- Completion expected in 1H26, subject to customary approvals and closing conditions
- Investors receive net returns exceeding 2.8x initial capital (after all fees)
- MA Financial to realise approximately $20 million gain on co-investment
- Performance fee to be received (final amount subject to transaction adjustments)
The transaction will create a leading national for-purpose residential aged care provider as a subsidiary of Anglicare Sydney. At a time of critical need in Australian aged care, the combined platform is positioned to bring new beds to the market, with development opportunities across the portfolio.
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How private equity fund returns work for investors
The 2.8x return multiple means investors receive back 2.8 times their original capital contribution after deducting all fees charged throughout the fund’s life. This represents the actual net outcome for fund participants, providing clarity on investment performance without requiring additional calculations.
MA Financial benefits from the transaction through two distinct mechanisms:
- Co-investment gain: Approximately $20 million direct balance sheet benefit from MA Financial’s own capital invested alongside fund investors
- Performance fee: Additional revenue based on fund outperformance, with final amount dependent on transaction adjustments typical when selling operating businesses
- Investor return: The 2.8x multiple represents the net outcome for external fund participants after all management and performance fees
This structure aligns MA Financial’s interests with investor outcomes. Strong returns support the company’s track record for future capital raising across its alternative asset management platform, demonstrating the fund manager’s ability to generate alpha through active asset management.
Transaction rationale and strategic fit
Anglicare Sydney’s acquisition of Infinite Care reflects strategic positioning within Australia’s aged care sector during a period of critical need. The combined platform brings together high-calibre teams committed to delivering whole-of-person, life enriching and respectful care for older Australians. Development opportunities across the merged portfolio position the enlarged entity to address new bed capacity requirements.
Julian Biggins, Joint CEO
“Following completion, investors in the MA Aged Care Fund will receive a total return, net of all fees in excess of a 2.8x multiple of their initial invested capital. The strong performance of the Fund highlights MA Financial’s strong track-record of delivering its investors great outcomes through its focus on active management of assets.”
The successful exit validates MA Financial’s sector thesis and asset selection. An active management approach, rather than passive hold strategies, delivered outperformance for fund participants. This track record strengthens MA Financial’s positioning when marketing future funds across its private credit, real estate and hospitality verticals.
Capital recycling into growth
Cash proceeds from both the co-investment realisation and performance fee are earmarked for growth initiatives. This capital allocation approach demonstrates financial discipline, supporting medium-term expansion without requiring dilutive external funding. The gain’s treatment as a one-off significant item in FY26 underlying earnings provides transparency for shareholders assessing normalised operating performance.
The positive financial outcome arising from the gain on sale of MA Financial’s co-investment links directly to guidance commentary provided at the Group’s recent FY25 result announcement. This connection reinforces management’s forward outlook, with tangible progress supporting previously communicated expectations.
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MA Financial’s alternative asset management platform
The MA Financial Aged Care Fund Sale sits within a broader global alternative asset management platform spanning private credit, real estate and hospitality. MA Financial lends to property, corporate and specialty finance sectors whilst providing corporate advisory services. The Group maintains operations across Australia, China, Hong Kong, New Zealand, Singapore and the United States.
| Metric | Value | Description | Relevance |
|---|---|---|---|
| Assets Under Management | $15.3 billion | Capital invested and managed on behalf of clients | Scale indicator for platform capacity |
| Managed Loans | $175 billion | Loan administration across property, corporate and specialty finance | Revenue diversification beyond pure asset management |
| Advisory Transactions | $135 billion+ | Corporate advisory and equity capital market transactions | Advisory capability complementing funds management |
| Team | 800+ professionals | Global footprint across six countries | Execution capacity and deal origination network |
The aged care fund exit demonstrates MA Financial’s capability to source, actively manage and successfully exit alternative assets. This track record supports future fundraising across the platform’s verticals, with institutional investors requiring demonstrated performance before committing capital to new vehicles.
What this means for MA Financial shareholders
The transaction delivers tangible near-term financial benefits. An approximate $20 million gain on co-investment, combined with a performance fee linked to the fund’s strong performance, contributes to FY26 earnings. Whilst the gain is treated as a one-off significant item, it validates the investment management business model underpinning MA Financial’s operations.
Capital recycling supports reinvestment without requiring external funding, positioning the company for continued growth in the alternatives sector. The 2.8x return multiple achieved for fund investors strengthens MA Financial’s competitive positioning when raising future funds, with track record serving as a primary differentiator in institutional capital allocation decisions.
The positive financial outcome arising from the gain on sale of MA Financial’s co-investment adds to guidance commentary provided at the recent FY25 result announcement. This tangible progress supports management’s forward outlook, with shareholders able to track delivery against previously communicated expectations. Final investment gain and performance fee amounts remain subject to transaction adjustments typical when selling operating businesses, with completion expected in 1H26 subject to customary approvals and closing conditions.
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