Downing, a leading investment manager, has completed its first acquisitions in the underserved neuro-rehabilitation care home sector, establishing a platform for further growth.

It has acquired Inspire Neurocare and Hamberley Neurocare, two specialist neuro-rehabilitation care providers that together operate four state-of-the-art facilities with 188 beds. This acquisition marks the first step in Downing’s expansion into the £1.1 billion sector, where rising demand for high-quality neuro-rehabilitation services continues to outpace supply.

The acquired companies operate neuro-rehabilitation residential facilities in Southampton, Basingstoke, Camberley and Worcester. As part of the deal, Downing will benefit from the strategic oversight of two highly experienced healthcare executives, Tim Street and Daniel Kay. Importantly, this is Downing’s first deal with capital raised from a European institutional investor.

Neuro-rehabilitation facilities provide crucial support for patients recovering from brain and spinal injuries, as well as other neurological conditions. However, the sector faces a significant capacity gap, with analysts estimating a shortage of 10,000 to 15,000 beds. This need is further underscored by data showing a 12% rise in hospital admissions for brain injuries between 2005/06 and 2019/20.

The private sector is increasingly supporting the provision of neuro-rehabilitation and Downing’s research shows a growing appetite from institutional investors to invest in the social care sector.

The study found that nearly four out of five (79%) UK public and private sector pension funds, insurance asset managers and family offices responsible for a collective £259 billion assets under management questioned said they expected to increase allocations to the sector. Almost all (93%) said they expect to see an increase in institutional investors working more closely with fund managers to identify more investment opportunities in the sector.

Torsten Mack, Investment Director, Downing said:

"The neuro-rehabilitation sector in the UK is driven by the need for more beds and investment, which can help take the pressure off the NHS by helping to reduce waiting lists and generating cost savings. We look forward to working with Tim, Daniel and our investors to help address this challenge."

"The completion of our first acquisitions in the neuro-rehabilitation sector establishes a platform for growth in this market and we expect to be able to announce further deals and investments in the near future."

Tim Street, Non-Executive Director, added:

"The private sector has a vital role to play in funding the development of services in the neuro-rehabilitation sector and Downing's commitment to investing is very welcome. Crucially they share our focus on optimising outcomes for individuals through the delivery of high-quality care and are looking to make further investments which will help to address growing demand.

Downing was advised on the transaction by Bevan Brittan, Connell Consulting, Hazlewoods and Evelyn Partners.

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