Lyceum Capital is continuing plans to invest a further £300 million (€360 million; $453 million) in the UK over the next two to three years with a £25 million (€30 million; $38 million) injection of capital into portfolio company Carewatch, a provider of homecare with over 22,000 clients and 149 offices across the UK.
The capital injection, which will be further backed by debt facilities from Barclays Corporate and Clydesdale Bank, will allow Carewatch to pursue further expansion. Over the past year and a half, Carewatch has completed a total of 12 acquisitions in the home-care market and has declared a strong interest in conducting further deals.
Led by chief executive officer David Lyon, Carewatch expects the provision of homecare to benefit from tightening government budgets, with the independent care provision sector being the government’s “best opportunity for driving efficiency and quality, high standards of care and providing value for money”, said Lyon.
The homecare sector is set to take advantage of an ageing UK population. According to the UK’s Office for National Statistics, between 2004 and 2050 the proportion of those aged 65 and above will jump from 16.0 to 24.8 in England and from 17.5 to 27.5 in Wales.