Octopus Capital secures £60m for UK care home sector

Octopus Capital has secured nearly £60 mln (€70 mln) for its Octopus Healthcare Fund from LGPS Central and Knight Frank Investment Management. 

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This significant investment will bolster the fund's ability to support the development of high-quality, sustainable care homes across the UK.
With this new capital, the Octopus Healthcare Fund's total assets under management now stand at £1.7 bn (€2 bn). The fund currently owns over 100 modern, purpose-built care homes, providing more than 7,500 care beds.
LGPS Central contributed £58 mln (€67.7 mln), marking its first investment in the care home sector. Knight Frank Investment Management provided the remaining funds, adding to their existing investment in the fund. Octopus Capital's strategy for the care sector focuses on long-term performance through financial analysis, quality assurance, and responsible investment. 
The fund has consistently achieved a 5-star rating in the Global Real Estate Sustainability Benchmark (GRESB) for three consecutive years, demonstrating its commitment to sustainability.
Michael Toft, head of Care Homes at Octopus Capital, said: “The UK continues to face an undersupply of quality care homes whilst demand continues to grow with our ageing population. By leveraging our expertise and importantly, with this new injection of capital, we can create more care homes to help meet this urgent need. We have a Quality Assurance Team to ensure high standards of care, and long-standing relationships with best-in-class operators, that will allow us to provide the essential infrastructure required to support our elderly across the UK today, and in the decades to come.”
Sian Roberts, head of UK Institutional Sales, commented: “It is great to see how the Octopus Healthcare Fund is now backed by a growing group of institutional investors seeking resilient income and attractive, risk-adjusted returns aligned with environmental and social outcomes. In particular, we’re really pleased to see more LGPS pool capital come into the Fund, as they begin to execute on their ‘fit for the future’ proposals. We know that these pools are increasingly looking to invest in local growth and social infrastructure, so we look forward to facilitating that through both our existing suite of products, and through creating tailor-made private market solutions.”
Mike Hardwick, investment director – Property at LGPS Central Limited, added: “Our investment in the Octopus Healthcare Fund aligns with our objective to deliver resilient, inflation-linked income for our Partner Funds while contributing to critical social infrastructure across the UK. The Fund’s focus on quality care provision, strong responsible investment integration and stewardship approach made this a compelling opportunity for LGPS Central.”