Founded by brothers Farouq and Haroon Sheikh (respectively executive chairman and chief executive) in 1993, CareTech is believed to be lining up an AIM debut in late October. Brewin Dolphin has been appointed broker and expectations are for a £10 million fundraising.

Currently generating annual revenues in the order of £18 million, the company provides residential care and support for people with learning disabilities and now operates 435 beds.

Barclays says it has secured a 34.8 per cent internal rate of return on its original £8 million investment.

A busy few days for the private equity house has also seen it dispose of its interest in Morson, a multinational staffing business targeting the aerospace, nuclear, rail and construction industries. ‘Morson has grown from a business with sales of £107 million when we invested in 1999 to £235 million in 2004,’ says Barclays’ Catherine Wall. ‘We are pleased to have supported this impressive growth.’