Octopus Investments (Octopus), a fast-growing UK fund management business with leading positions in several specialist sectors including healthcare, energy and smaller company investing, today announced that it is expanding its healthcare business through the acquisition of MedicX Holdings Ltd, the leading 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, CEO, have agreed to acquire MedicX Holdings Ltd (MedicX) from funds advised by Cabot Square Capital. The acquisition takes Octopus’ funds under management to over £4.7 billion with MedicX managing £0.9 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 £100 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. MedicX provides a unique opportunity to scale Octopus’ Healthcare business and expand the investment platform to enable more investors to benefit from the potential attractive returns and growth that the sector offers.
Commenting on the transaction, Simon Rogerson, CEO of Octopus, said:
“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, said:
“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.”
David Staples, Chairman of MedicX Fund Limited, said:
“We look forward to the Fund being able to build on its success to date under Mike’s leadership and to draw on the support and expertise of the wider Octopus group. Octopus has made it clear that it intends to be a long term owner, and it recognises the excellent working relationship and clear focused strategy that has been shared by the Board of MedicX Fund and MedicX Adviser Ltd to enable the Fund to build a market leading portfolio, high quality debt facilities, a strong performance track record and a loyal and diverse shareholder register. ”
Keith Maddin, Partner at Cabot Square Capital, said:
“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.”
Simon Rogerson added:
“MedicX offers a proven and effective business model that combines investment management expertise with an in-house developer capability to deliver a strong pipeline of investment opportunities. Our partnership with Lightsource Renewable Energy highlights the competitive advantage this achieves and the value that can be unlocked by it for our investors.”
Since it was founded in 2000, Octopus has made a number of successful acquisitions, as well as entering into a strategic partnerships, to support the growth of the business and expand its investment platform. This includes its investment in Lightsource Renewable Energy, the UK’s leading solar energy company.
For journalists in their professional capacity only. The value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest. Personal opinions may change and should not be seen as advice or a recommendation. We do not offer investment or tax advice. We recommend investors seek professional advice before deciding to invest. Issued by Octopus Healthcare Adviser Limited which is authorised and regulated by the Financial Conduct Authority. Registered office is 6th Floor, 33 Holborn, London EC1N 2HT. Registered in England and Wales No. 05857926. Issued: October 2014.