Octopus Capital has announced a £60 million investment into its Octopus Healthcare Strategy, marking a significant step in its mission to enhance and expand the UK’s care home sector. The funding round includes £58 million from LGPS Central (LGPSC) and an additional contribution from Knight Frank Investment Management, further strengthening Octopus Capital’s position as one of the leading investors in the UK’s healthcare infrastructure.
For the past 15 years, Octopus Capital has focused on directing institutional capital into care home development, creating sustainable, high-quality facilities nationwide. With this new investment, the Octopus Healthcare Team will continue building modern, purpose-built homes designed to meet the evolving needs of the UK’s ageing population. The firm now manages £1.7 billion in assets and oversees more than 100 care homes that collectively provide over 7,500 care beds.
The majority of the new funding (£58 million) originates from LGPS Central, which manages the pooled pension funds of eight local authorities, including Cheshire, Derbyshire, Leicestershire, Nottinghamshire, Shropshire, Staffordshire, West Midlands, and Worcestershire. This marks LGPSC’s first investment in the care home asset class, reflecting its strategy to diversify portfolio exposure and support socially impactful investments.
Knight Frank Investment Management, the property investment arm of global consultancy Knight Frank, also contributed to the round, adding to its existing investment on behalf of clients. The collaboration reflects growing institutional interest in care home assets as both a resilient and socially significant investment opportunity.
Octopus Capital’s investment strategy rests on three foundational pillars: financial analysis, quality assurance, and responsible investment. The firm has been recognized for its commitment to sustainability, earning a 5-star rating for the third consecutive year from the Global Real Estate Sustainability Benchmark (GRESB), a leading benchmark for the real estate investment industry.
KEY QUOTES:
“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.”
Michael Toft, Head of Care Homes at Octopus Capital
“We’re really pleased to see more LGPS pool capital come into the strategy, 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.”
Sian Roberts, Head of UK Institutional Sales at Octopus Capital
