Healthcare Veterans Raise £330M For One Of UK’s Biggest Later Living Funds

A company set up by some of the most senior figures in UK healthcare real estate has raised £330M of equity for a new care home fund.

Elevation Advisors said it raised £330M for Elevation Healthcare Properties, a new fund that has been seeded with 26 care homes comprising 1,800 beds leased to six specialist operators. 

The value of the portfolio is £400M, and the fundraise gives the company equity to buy further assets. 

The company was targeting £200M-£250M of equity, meaning that the new fund is oversubscribed. The fund is open-ended, and Elevation will raise more equity in future to make further acquisitions. 

The UK senior living sector is seen as having good long-term potential by investors, given the UK’s ageing population and the lack of good quality care homes. But the property type’s operational complexity has put some investors off. The Elevation fund is one of the largest sector-specific vehicles targeting care homes in the UK.

EHP intends to deploy the capital raised to acquire and develop new properties on a pre-let forward fund basis, Elevation said.

“Beyond the near-term pipeline supported by this funding round, on the back of the depth of the market opportunity and investor appetite, Elevation has ambition to continue expanding the vehicle,” the company said in a statement. 

In line with EHP’s existing strategy, the properties will be let on inflation-linked, long-term leases to national and regional operators. Elevation selects operating partners who are proven to create best-in-class senior-living environments, have an excellent record in care and can evidence a positive impact on their local communities, the company said.

Elevation was founded by Andrea Auteri and Hunter Drew, who previously ran the European office of U.S. healthcare real estate giant HCP. Its joint venture partners include PGIM Real Estate and the pension fund of BAE Systems.