Octopus Investments commits £400m for care home acquisition

Octopus Investments raised £2 billion over the 12 months to 31 March 2022, bringing its total institutional funds under management to £4.6 billion. It also increased its pool of global institutional investors by 50%. 

Octopus is a manager of alternative investments in the UK, with specialist expertise in renewable energy, venture capital, sustainable infrastructure, health and care real estate and commercial real estate debt.

One notable fundraise was Octopus’ care home strategy to meet the needs of the ageing population. It raised more than £400 million from investors, including pooled and individual local government pension schemes and overseas investors from the Netherlands, Scandinavia, and Japan.

Octopus stated that the strategy increases the supply of UK quality care homes to release pressure on healthcare providers and improve quality of life for older demographics. The Greater Manchester Pension Fund is among committed investors, and the entire portfolio has committed to net zero targets.

Chris Hulatt, co-founder of Octopus Group, said: “Our client base has long been interested in private markets with a sustainable tilt, but we have seen a step change in commitments in the past year with additional capital being allocated to our strategies from investors across the globe. Healthcare and renewables are two particularly dominant trends, with the climate crisis and global pandemic putting a sharp focus on the role for private capital to drive tangible, positive change against these themes.

 “While continuing to grow these strategies, we are looking closely at how to enable institutional investors to access growth companies. This will benefit the British entrepreneurs building world-leading companies and drive economic growth, while providing strong risk-adjusted returns and enabling greater end investor engagement. Central to this is working with the UK government on its consultation to remove the regulatory charge cap on pension schemes, that in most cases restricts them from accessing venture capital opportunities. This is a compelling private market opportunity that pension schemes should be able to access, alongside more traditional allocations.

“We have ambitious plans to grow our institutional investor base, bringing them innovative opportunities in specialist sectors that present both sustainability and compelling risk-adjusted return opportunities.” 

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