Octopus Capital has raised just under £60 million for its Octopus Healthcare Fund, with the majority of the investment coming from LGPS Central, the investment manager for several UK public sector pension funds, and Knight Frank Investment Management.

This latest capital raise brings the total funds under management in the Octopus Healthcare Fund to £1.7 billion, positioning it as one of the UK’s leading owners of purpose-built care homes. The fund now serves as landlord to more than 100 modern care homes, collectively providing over 7,500 care beds across the country.

The new investment will enable Octopus Capital to continue expanding its portfolio of high-quality, modern care homes in response to growing demand for elderly care in the UK. The fund focuses on addressing the country’s increasing need for care home infrastructure by supporting both the development and maintenance of facilities that deliver high standards of living and care.

Working with experienced care home operators, the Octopus Healthcare Fund places strong emphasis on quality assurance and sustainable design. The fund is committed to environmental and social impact, including achieving net zero carbon emissions for all new homes by 2030.

Of the nearly £60 million raised, £58 million was provided by LGPS Central, reflecting the continued appetite among UK public pension funds for investments that combine resilient, inflation-linked income with positive social outcomes. Knight Frank Investment Management also contributed to the fund, continuing its partnership with Octopus Capital and reinforcing its focus on the healthcare real estate sector.

This capital raise underscores the growing institutional interest in social infrastructure investments that address demographic change and the quality of care in the UK.

The Octopus Healthcare Fund, managed by Octopus Real Estate (part of Octopus Capital), invests in modern, purpose-built care homes across the UK. The fund aims to deliver long-term, stable income for institutional investors while helping to meet the nation’s increasing demand for elderly care. Through its partnerships, Octopus seeks to raise standards in care quality, sustainability, and community impact within the healthcare real estate sector.