Circle Health – the company that last week became the first private healthcare operator to take over the running of an NHS district general hospital – has variously been described as a "John Lewis-style mutual", a "third-sector provider", and a "social enterprise majority owned by employees". It is none of these things.
If it were, it would not have attracted about £120m of investment from highly astute and profit-driven venture capital and hedge funds, including Odey European, Lansdowne, Balderton and BlueCrest. These funds are run by ruthlessly brilliant investment managers whose reputations are built on spotting trends in the capital markets before anyone else.
Anyone who thinks their investment criteria might include a social dimension would do well to cast their mind back to 2009. Some of these funds made millions from identifying weaknesses in Britain's banks, and betting the Treasury would be forced to intervene to rescue them. It might be too much to say they caused that banking crisis, but they saw it coming, and saw an opportunity to profit.
So what exactly is Circle Health? In truth, it is a subsidiary ultimately controlled by Circle Holdings, which in turn became a publicly listed company following its flotation on Aim on 17 June. Almost 95% of those shares have remained in the hands of six investors, including the above-mentioned funds. Behind all the spin, the simple fact is that Circle Health remains a loss-making, growing, private business run by a chief executive, Ali Parsa, who has a fiduciary duty to maximise returns for his shareholders.