Gresham House acquires New Century Care

Press Release - July 2022

Gresham House announces the £21mn acquisition of New Century Care (NCC), an elderly care provider operating care homes across the UK, as part of its plan to deliver quality social care via its Sustainable Infrastructure investment strategy.

▪ First operational residential healthcare portfolio acquired as part of BSIF strategy

▪ 4mn older people in the UK do not have access to the care or support they need

▪ Anchor investment to build out an elderly care platform focused on delivering improved quality of care and serving a higher acuity of needs

The investment was made by Gresham House’s second flagship sustainability fund, BSIF II, spurred by the need to close a growing gap between the supply and demand for high-quality care in the senior living sector.

BSIF II acquired the NCC portfolio in partnership with specialist care and education provider Salutem and expects to grow its combined portfolio both organically and through strategic acquisitions over the next few years.

NCC currently provides care for nearly 300 elderly residents across six sites in the south of England and Scotland.

Under its new ownership and management, its capacity and offer will expand, adding much-needed new beds and specialist care for the elderly care sector – where currently an estimated 1.4mn older people in the UK do not have access to the care or support they need.¹

Future plans will also see quality of care enhanced, to ensure a higher acuity of needs, including specialist dementia care, are catered for.

Gresham House’s operating partnership with Salutem, one of the UK’s top 10 providers of specialist care and education, will ensure these investments deliver positive and responsible social impact.

Salutem operates over 130 sites across England and Wales, covering 150 different funding bodies, with above-market levels of regulatory approval and staff retention.

NCC’s expansion plans reflect that creating positive impact offers the potential for attractive returns on investment. In the past five years there has been only a 0.9% increase in social care capacity in the UK, while the population aged 85+ has grown by 9.1%.²

By 2041 it is expected that there will be over 3 million people aged 85 or over – more than double the number that there are today.³

By enhancing the capacity and quality of social care, this investment aims to achieve strong long-term returns while delivering invaluable social impact.

Sharan Soni, Investment Manager, Sustainable Infrastructure said:

“Providing quality and compassionate care for everyone who needs it is critical to achieving a sustainable society and economy. We understand the huge challenges faced by the sector and the positive impact that quality care can deliver for residents and society more widely.

Through this anchor investment and our growth plans, we are confident that we can help to address a growing challenge for social sustainability by enhancing elderly care provision, while identifying financially attractive opportunities that serve the UK’s ageing population.”

John Godden, Chief Executive Officer at Salutem said:

“We are pleased to partner with Gresham House on this investment at an important juncture for the sector. Owing to demographic change and other factors, the social care sector requires substantial investment and compassionate stewardship to boost capacity and quality, ensuring we can achieve a more sustainable society.

Working in partnership, we are committed to addressing the growing gap between demand and supply for high quality care.”

1. mha.org.uk/get-involved/policy-influencing/facts-stats

2. local.gov.uk/about/news/lga-launches-own-green-paper-adult-social-care-reaches-breaking-point

3. https://www.mha.org.uk/get-involved/policy-influencing/facts-stats/