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Institutional demand for real assets helps grow Octopus AUM in 2017

Octopus Group (Octopus) has increased its total institutional assets under management (AUM) by over GBP500 million in 2017, the business announced today. Octopus’ institutional AUM is GBP1.7 billion and its total overall AUM is over GBP7 billion.

As investors increasingly turn their attention to the long-term benefits of real asset investments, Octopus has successfully raised capital across several of its key investment strategies. This includes raising funds to invest in renewable energy on the back of Octopus’ track-record as one of the largest renewable energy investors in the UK. The business also completed further fundraises in commercial property and healthcare real estate, with the latter seeing Octopus convert one of its established institutional funds into an evergreen structure to cater to growing investor demand for long term exposure to the UK healthcare sector.

Specific fundraising initiatives in 2017 include: a circa GBP300 million close of the Renewable Energy Income Partnership to invest in operational renewable energy plants in the UK; a GBP115 million close for its second Commercial Real Estate Debt Fund; a GBP82 million initial fundraise for the Octopus Healthcare Fund (formerly known as MedicX Health Fund), following its conversion to a perpetual life vehicle.
 
Chris Hulatt, co-founder of Octopus Group, says: “The institutions that we’re speaking to are now seeing real assets as a core component of their portfolio. The relative stability and long-term return profile of these assets are increasingly appealing in the current environment, but so too are the wider benefits that these investments can bring, such as promoting decarbonisation or improving standards of care in later life. Institutional capital has a meaningful role to play in helping to transform these industries, helping to create better outcomes for customers while generating a financial return for investors.
 
“We expect to see continued demand for real assets throughout 2018 and we’re looking forward to using our knowledge and experience across our specialist markets to help institutions generate both returns and impact through their investments.”
 
Octopus is a specialist investor in real assets, private credit and high-growth small businesses. It offers institutional investors access to sterling-denominated investments in mainstream sectors of the economy. Its assets are long-term in nature, cash-yielding and are resilient to economic headwinds. The Octopus team is made up of over 125 investment professionals and has almost two decades’ experience of operating in its chosen markets.

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