The U.K.’s the Local Government Pension Scheme (LGPS) have committed just under $77M (£60M) to the home care sector through the Octopus Healthcare Fund.
LGPS Central Ltd., which oversees pooled assets for the LGPS’, comprised of Cheshire, Derbyshire, Leicestershire, Nottinghamshire, Shropshire, Staffordshire, West Midlands and Worcestershire local governments, made the investment as part of the fund’s latest capital raise, according to a news release by Octopus Capital. The fund also includes commitments from Knight Frank Investment Management.
The Octopus Healthcare Fund, which now manages around £1.7B ($2.2B), invests in modern, purpose-built care homes across the U.K. Its current portfolio includes 100 properties providing around 7,500 care beds.
“The U.K. continues to face an undersupply of quality care homes whilst demand continues to grow with our ageing population,” said Michael Toft, head of care homes at Octopus Capital, in the release. “By leveraging our expertise and, importantly, with this new injection of capital, we can create more care homes to help meet this urgent need.”
By pooling assets, LGPS Central aims to improve investment outcomes and broaden access to alternative markets. In the release, the investment manager said this commitment marks its first investment in the care home sector, reflecting the pool’s growing focus on long-term, socially focused real asset strategies.
