LGPS Central invests £58m in care homes
Published: October 28, 2025
LGPS Central has invested £58m in care home investor the Octopus Healthcare Fund, marking the first time the pool has invested in this asset class.
This was made alongside Knight Frank Investment Management, which made a just-under-£2m investment in the fund.
Launched back in 2017, the Octopus Healthcare Fund currently has £1.7bn worth of assets under management and is landlord to more than 100 purpose-built care homes and is delivering an 8.3% return on investment as of the second quarter of this year.
Octopus Capital’s head of care homes Michael Toft said: “The UK continues to face an undersupply of quality care homes whilst demand continues to grow with our ageing population. By leveraging our expertise and importantly, with this new injection of capital, we can create more care homes to help meet this urgent need.
“We have a quality assurance team to ensure high standards of care, and long-standing relationships with best-in-class operators, that will allow us to provide the essential infrastructure required to support our elderly across the UK today, and in the decades to come.”
Octopus Capital’s head of UK institutional sales Sian Roberts added: “It is great to see how the Octopus Healthcare Fund is now backed by a growing group of institutional investors seeking resilient income and attractive, risk-adjusted returns aligned with environmental and social outcomes.
“In particular, we’re really pleased to see more LGPS pool capital come into the fund, as they begin to execute on their ‘fit for the future’ proposals.
“We know that these pools are increasingly looking to invest in local growth and social infrastructure, so we look forward to facilitating that through both our existing suite of products and through creating tailor-made private market solutions.”
LGPS Central’s investment director for property Mike Hardwick said: “Our investment in the Octopus Healthcare Fund aligns with our objective to deliver resilient, inflation-linked income for our partner funds while contributing to critical social infrastructure across the UK.
“The fund’s focus on quality care provision, strong responsible investment integration and stewardship approach made this a compelling opportunity for LGPS Central.”
