Octopus Investments is expanding its healthcare business through the acquisition of MedicX Holdings Ltd, a UK healthcare real estate investment manager.
The acquisition has been completed via Octopus’ parent company, Octopus Capital Ltd.
Octopus Capital Ltd and the MedicX management team, led by Mike Adams, have agreed to acquire MedicX from funds advised by Cabot Square Capital.
The acquisition takes Octopus’ funds under management to over GBP4.7 billion with MedicX managing GBP0.9 billion of funds across the LSE listed MedicX Fund (MXF) and two private closed-ended funds.
Octopus has been an active investor in the healthcare sector for the last three years and has an established healthcare business which has provided over GBP100 million of financing to date with a strong pipeline of opportunities in a growing market. Recent deals include financing Carebase, a nursing, residential and dementia care home developer, and Rangeford, a developer of retirement villages.
Simon Rogerson, CEO of Octopus, says: “We are delighted to welcome Mike and the team to Octopus. Octopus has a long track record of building exceptional investment platforms that have the potential to provide attractive returns and investment solutions for our investors. MedicX is an impressive company led by a talented management team that is well positioned to take advantage of the growth opportunities in the healthcare sector as we broaden our investment platform. Mike will continue to manage the MedicX funds with his existing team, and will lead the combined Octopus Healthcare business as we look to provide a wider range of investors with greater access to the asset class.”
Mike Adams, CEO of MedicX, says: “This is an exciting opportunity to combine two of the leading teams in the healthcare investment sector. The UK faces a number of significant challenges in this area, not least the demand and strain that an ageing population is placing on our healthcare infrastructure. Today there are over 10 million people living in the UK who are over 60 years old; this is going to increase to 17 million in the next 20 years. There is plenty of evidence to illustrate the urgent need for investment if the UK is going to be able to tackle this challenge head on, including building a sustainable and attractive hospital, retirement, care and nursing home sector. I look forward to working with the Octopus team to bring our investors the very best investment opportunities that the healthcare sector can offer.”
Keith Maddin, partner at Cabot Square Capital, says: “Ten years after it was founded by Cabot Square Capital, MedicX is ideally positioned as the leader in a fast-growing sector to take advantage of excellent growth opportunities under new ownership. We would like to thank Mike Adams and his team for all their hard work and wish them every success in the future.”
