Warwick Capital Partners acquires majority stake in Danforth Care Homes
- The stake has been acquired from LNT Care Developments, who will retain an ongoing interest in the business
- The acquisition marks Warwick’s second investment in partnership with LNT
- At the time of closing Danforth operates 18 high-quality purpose-built care homes with the portfolio expected to grow to 25 homes
London, June 26, 2024 – Warwick Capital Partners (“Warwick”), the global private equity and credit firm, is pleased to announce it has acquired a majority stake in Danforth Care Homes (“Danforth”). The stake has been bought from LNT Care Developments (“LNT”), the UK’s premier care home developer, who will retain an ongoing interest in the business.
Danforth operates 18 care homes across the UK, with the expectation to open seven further homes in the coming months. All homes operated by the group are new, purpose-built and operationally carbon net-zero.
Amidst an undersupply of quality care homes in the UK, Warwick and LNT will work with Danforth in its aim to adhere to the highest standards of elderly residential care within a modern and comfortable environment.
This acquisition marks Warwick’s second investment into the UK care sector, as well as a continuation of the firm’s successful partnership with LNT. Warwick’s first investment in the sector was Ideal Carehomes in 2019. Under Warwick and LNT’s stewardship, Ideal Carehomes grew from 17 to 36 homes and the group’s regulatory compliance improved significantly – to become one of the best-rated operators in the UK, with over 90% of rated homes ranked “Outstanding” or “Good” by the UK Care Quality Commission. The business was sold to HC-One in 2023.
Warwick was principally advised by Dechert LLP and Deloitte on the transaction.
Ian Burgess, Managing Partner and Co-Founder at Warwick Capital Partners, said:
“At Warwick, we are always on the lookout for opportunities with a scarcity of capital and investment. In the UK, we continue to see demand for modern homes with quality care such as those Danforth provides and are pleased to support that growth alongside the deep sector expertise of LNT.”
Matt Lowe, CEO at LNT, commented:
“Providing high-quality care for the elderly is a societal imperative, and one that requires specialist experience as well as investment in future-proofed, purpose-built care environments. As the UK’s leading developer and commissioner of ESG-forward residential carehomes, we are pleased to partner again with Warwick to successfully commission another portfolio of operational assets in Danforth Care Homes. We look forward to our collaboration and delivering the best possible service for our residents.”
About Warwick Capital Partners
Warwick Capital Partners is a global special situations investment firm focused on addressing complex capital needs across equity and debt. Founded in 2010 and with offices in London and Stamford, Connecticut, the firm manages $2.5 billion on behalf of global investors. Across European Flagship Funds, Specialty Funds, and Performing Credit, Warwick seeks to unlock value for its investors through a rigorous yet innovative approach to investing. For more information, please visit www.warwickcap.com.
About LNT
As the UK's leading developer of purpose-built residential care home portfolios, LNT has created approx. £4.0 billion of real estate asset value, including over 230 care homes across the UK, providing more than 15,000 beds to the UK’s ageing population.
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