Octopus Investments has bought a specialist fund management business as it looks to expand in the UK healthcare sector.
The UK company said it had bought MedicX Holdings from funds advised by Cabot Square Capital.
The acquisition takes Octopus’ funds under management above £4.7bn.
MedicX, which manages £900m of funds, also has two private closed-ended funds.
Octopus, which has invested in healthcare for the past three years, will merge its existing team with MedicX staff.
The firm said MedicX will provide a “unique opportunity” to expand its investment platform.
Mike Adams, chief executive of MedicX, said the UK faces a “number of significant challenges”, including the increased demand and strain of an ageing population.
“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,” he said.
Octopus, which has provided over £100m of financing in the sector, recently financed Carebase, a nursing, residential and dementia care home developer, as well as retirement village developer Rangeford.
The MedicX Fund, listed since 2006, is a specialist primary-care infrastructure fund, investing in purpose-built UK primary healthcare properties.
Backed by institutional money, the fund has delivered an average annual return of 10% over the last five years.
The MedicX Health Fund I and II invest in modern, high-quality healthcare property let on long-term leases to operators, including elderly care, diagnostics and dialysis, intermediate care and rehabilitation facilities.
