Palamon makes 3.6x return on OSG sale to Nordic Capital

Palamon Capital Partners has sold German eye treatment business OberScharrer Group (OSG) to Nordic Capital, generating a 3.6x return.

Palamon European Equity II picked up a majority stake in OSG in 2011 when the business operated 17 sites. OSG now has 900 employees across its 80 clinics in Germany and performs over 85,000 treatments per year.

Palamon said its investment was “underpinned by stable market growth dynamics of approximately four per cent per annum” which was driven by an ageing population, new treatments and a shift from public healthcare to outpatient services.

With investment from Nordic Capital Fund IX, OSG will look to continue to develop its current strategy in the fragmented eye treatment sector.

The exit of OSG is Palamon’s sixteenth realisation from its 2006 vintage fund and its eighth to have generated a return of more than 3x on invested capital. The firm closed its Palamon European Equity III fund last year on a €402m hard cap.

This is the second investment from Nordic Capital’s latest fund, which is expected to close beyond its €3.5bn target in the coming weeks, according to sources familiar with the matter.

Nordic Capital declined to comment.