Downing Social Care Report 2023

23/2/23
15 min
Social care
Report

The first Downing LLP social care report, ‘Emerging Trends in Social Care Investing’, explores the latest perspectives of 50 UK pension funds, which collectively manage about £102bn.   

On the up

This is an independently commissioned report that gauges key institutional themes and reveals a surge in interest in social care - with UK pension schemes poised to increase exposure to the sector. The report also identifies the hierarchy of reasons behind the elevated interest into the sector and why institutional allocations are growing.  

One major motivation for increased exposure by institutions is the emergence of the older generation expressing willingness to pay privately for good quality healthcare. Other key reasons include the UK’s profound demographic challenges and the necessity for improved diagnosis of needs.  

Evolving care - ESG ready

The report indicates that the social care sector is under pressure from the weight of growing demand, funding shortfalls and the lack of modern, fit-for-purpose accommodation. This has presented an opportunity for social care asset managers to more broadly align with institutions focused on ESG and impact investing.  

Indeed, 100% of the respondents surveyed agree investing in social care supports ESG credentials. The report also shows the ESG story in social care investing is evolving with more of an emphasis on the ‘S’.

The report also examines the regulatory backdrop. The findings show UK pension schemes interviewed expect the level of regulation focusing on the social care market, and the associated checks and systems put in place to ensure the sector provides quality care, to improve over the next five years.  

Finally, while the tailwinds for the sector are clear, the report's deeper analysis explains that schemes entering the market need to be wary of adopting a homogenous and generalist approach. Investors need to develop an understanding of factors influencing different types of care, including local supply and demand factors.  

If you would like to read the report and the full analysis, please click the download button below.  

Contents
See full contents

The first Downing LLP social care report, ‘Emerging Trends in Social Care Investing’, explores the latest perspectives of 50 UK pension funds, which collectively manage about £102bn.   

On the up

This is an independently commissioned report that gauges key institutional themes and reveals a surge in interest in social care - with UK pension schemes poised to increase exposure to the sector. The report also identifies the hierarchy of reasons behind the elevated interest into the sector and why institutional allocations are growing.  

One major motivation for increased exposure by institutions is the emergence of the older generation expressing willingness to pay privately for good quality healthcare. Other key reasons include the UK’s profound demographic challenges and the necessity for improved diagnosis of needs.  

Evolving care - ESG ready

The report indicates that the social care sector is under pressure from the weight of growing demand, funding shortfalls and the lack of modern, fit-for-purpose accommodation. This has presented an opportunity for social care asset managers to more broadly align with institutions focused on ESG and impact investing.  

Indeed, 100% of the respondents surveyed agree investing in social care supports ESG credentials. The report also shows the ESG story in social care investing is evolving with more of an emphasis on the ‘S’.

The report also examines the regulatory backdrop. The findings show UK pension schemes interviewed expect the level of regulation focusing on the social care market, and the associated checks and systems put in place to ensure the sector provides quality care, to improve over the next five years.  

Finally, while the tailwinds for the sector are clear, the report's deeper analysis explains that schemes entering the market need to be wary of adopting a homogenous and generalist approach. Investors need to develop an understanding of factors influencing different types of care, including local supply and demand factors.  

If you would like to read the report and the full analysis, please click the download button below.  

We are delighted to announce that Mark Gross, Partner and Head of Development Capital, has been named Equity Investor of the year at the HealthInvestor Power List 2024 Awards.

Following Mark’s achievement last year when he won the “Leading Investor” award at HealthInvestor’s Power50, this year’s win further highlights his continued success and expertise in investing across the healthcare sector. 

The judges praised Mark for finding success both in value and volume this year, delivering good returns and growth. They were impressed by how Mark has continued to strengthen a strong track record with further growth in the team and new funds securing further backing. We extend our thanks to Mark and the Downing Development Capital team for their continued dedication and support in expanding our healthcare investment activities with a focus on quality, performance and reputation. 

Congratulations Mark!

Development Capital  

Downing Development Capital is an award-winning investor focused on investment opportunities into asset-backed operating businesses with downside protection. Typical sectors they invest in include healthcare, specialist education, hospitality, leisure and IT infrastructure.

Learn more about our Development Capital team

The first Downing LLP social care report, ‘Emerging Trends in Social Care Investing’, explores the latest perspectives of 50 UK pension funds, which collectively manage about £102bn.   

On the up

This is an independently commissioned report that gauges key institutional themes and reveals a surge in interest in social care - with UK pension schemes poised to increase exposure to the sector. The report also identifies the hierarchy of reasons behind the elevated interest into the sector and why institutional allocations are growing.  

One major motivation for increased exposure by institutions is the emergence of the older generation expressing willingness to pay privately for good quality healthcare. Other key reasons include the UK’s profound demographic challenges and the necessity for improved diagnosis of needs.  

Evolving care - ESG ready

The report indicates that the social care sector is under pressure from the weight of growing demand, funding shortfalls and the lack of modern, fit-for-purpose accommodation. This has presented an opportunity for social care asset managers to more broadly align with institutions focused on ESG and impact investing.  

Indeed, 100% of the respondents surveyed agree investing in social care supports ESG credentials. The report also shows the ESG story in social care investing is evolving with more of an emphasis on the ‘S’.

The report also examines the regulatory backdrop. The findings show UK pension schemes interviewed expect the level of regulation focusing on the social care market, and the associated checks and systems put in place to ensure the sector provides quality care, to improve over the next five years.  

Finally, while the tailwinds for the sector are clear, the report's deeper analysis explains that schemes entering the market need to be wary of adopting a homogenous and generalist approach. Investors need to develop an understanding of factors influencing different types of care, including local supply and demand factors.  

If you would like to read the report and the full analysis, please click the download button below.  

Downing's Mysa Care continues to grow specialist care business
Learn more

Torsten Mack, Investment Director at Downing, said:

"We are proud to support this exceptional management team, whose strong track record positions them well to build a new business in dementia care. This needs-based sector is underpinned by a lack of quality supply and we are investing in Fortava Healthcare to set and deliver high standards, and to help make a difference."

Johann van Zyl, CEO at Fortava, added:

"I’m thrilled to be working with Jamie, as we share the same values. We plan to grow Fortava into a leading provider of dementia care over the next five to seven years. But growth isn’t our primary focus—our goal is to deliver outstanding care and foster a joyful, supportive environment for both residents and staff. We’re delighted to be partnering with Downing who also share our values and we look forward to this journey with them."

Jamie Stuart, CFO at Fortava, commented:

“For me, it's about being more than just another care home provider. While dementia care in the UK is generally of a good standard, we want to set ourselves apart with a fresh approach. That’s why, after over 25 years in banking, I chose to partner with Johann and Downing on this venture.”

The first Downing LLP social care report, ‘Emerging Trends in Social Care Investing’, explores the latest perspectives of 50 UK pension funds, which collectively manage about £102bn.   

On the up

This is an independently commissioned report that gauges key institutional themes and reveals a surge in interest in social care - with UK pension schemes poised to increase exposure to the sector. The report also identifies the hierarchy of reasons behind the elevated interest into the sector and why institutional allocations are growing.  

One major motivation for increased exposure by institutions is the emergence of the older generation expressing willingness to pay privately for good quality healthcare. Other key reasons include the UK’s profound demographic challenges and the necessity for improved diagnosis of needs.  

Evolving care - ESG ready

The report indicates that the social care sector is under pressure from the weight of growing demand, funding shortfalls and the lack of modern, fit-for-purpose accommodation. This has presented an opportunity for social care asset managers to more broadly align with institutions focused on ESG and impact investing.  

Indeed, 100% of the respondents surveyed agree investing in social care supports ESG credentials. The report also shows the ESG story in social care investing is evolving with more of an emphasis on the ‘S’.

The report also examines the regulatory backdrop. The findings show UK pension schemes interviewed expect the level of regulation focusing on the social care market, and the associated checks and systems put in place to ensure the sector provides quality care, to improve over the next five years.  

Finally, while the tailwinds for the sector are clear, the report's deeper analysis explains that schemes entering the market need to be wary of adopting a homogenous and generalist approach. Investors need to develop an understanding of factors influencing different types of care, including local supply and demand factors.  

If you would like to read the report and the full analysis, please click the download button below.  

Please fill out the form to download the full report

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Sign up to stay up to date with the latest insights and investment opportunities
Learn more

Downing LLP does not provide advice or make personal recommendations and investors are strongly urged to seek independent advice before investing. Investments offered on this website carry a higher risk than many other types of investment and prospective investors should be aware that capital is at risk and the value of their investment may go down as well as up. Any investment should only be made on the basis of the relevant product literature and your attention is drawn to the risk, fees and taxation factors contained therein. Tax treatment depends on individual circumstances of each investor and may be subject to change in the future. Past performance is not a reliable indicator of future performance. Downing LLP is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 545025). Registered in England No. OC341575. Registered Office: Downing, 10 Lower Thames Street, London, EC3R 6AF.

VAT Number: 112 940 149