Key information
- Sector: Specialist Care
- Location: West Midlands and Yorkshire, UK
- Investment date: 2022
- Investment structure: Majority equity control, senior secured debt with minority equity upside
- Why did we invest: We identified adult specialist care as one of the most robust, high-margin segments of the UK healthcare sector and saw an opportunity to partner with an exceptional operator currently running an ‘outstanding’ rated home. The higher acuity care needs of residents, the increasing prevalence of challenging behaviour dementia, coupled with the under-provision of homes of this nature means there is a consistent demand for these services.
About Grainger:
Grainger is an operator of adult specialist care homes in the West Midlands and Yorkshire. It has been rated as an ‘outstanding’ care home by CQC and the management team has developed a track record of delivering best-in-class care to residents.
Downing’s relationship with Grainger:
Downing was introduced to the Grainger management team through one of our long-term partners, who joined us in setting up the new Grainger holding company. Both parties were aligned in using Grainger’s reputation and operational capabilities to build a platform to acquire complimentary services and generate organic growth. The ultimate goal is to solidify Grainger’s position as a “best-in-class” specialist care platform.
Downing’s value-add:
By investing in Grainger, Downing is supporting the growth and development of UK-based businesses providing social good in generally underserved and fragmented markets. Throughout the partnership with Grainger, we demonstrated several value-add activities, including:
- Experience as a healthcare investor. This enabled Downing to utilise its wide network of individuals and organisations to grow the platform and recruit quality senior staff
- Invested across the capital structure, meaning we can provide the funding required for growth opportunities without being reliant on raising third-party funds
- Downing’s in-house construction director, John Pilbeam, has played a vital role in helping the management team assess properties and refurbishment-related issues
- Downing has put corporate governance processes in place, including monthly board meetings to ensure operational, financial and strategic oversight alongside regular input regarding the growth of the group
- Agile decision-making that has helped the group capitalise on growth opportunities
The future for Grainger:
Downing will continue to support Grainger and plans to grow it into a leading specialist care platform. We believe that the management team’s ability to deliver acute, needs-based services to vulnerable end users positions it well for future growth and opportunities.
Share
