AMP expands into UK specialist care with Regard deal

The firm takes sole ownership with acquisition from Montreux Healthcare Fund and Macquarie Principal Finance, marking its first move in the sector.

AMP Capital has marked its entrance into specialist healthcare following the acquisition of UK-based provider Regard Group.

The firm has become the sole owner of Regard, taking over from majority owner Montreux Healthcare Fund and Macquarie Principal Finance, which bought the business in 2014 for £124 million ($165.9 million; €140 million). The terms of the latest deal are undisclosed.

Regard provides supported living and residential services for people with learning disabilities, mental health needs and acquired brain injury. The group has 161 services and 1,186 beds across the UK and is the fourth-largest specialist care provider in the UK.

“It has a strong existing management team, offers stable cashflows, and has industry-leading occupancy levels,” said Julie-Anne Mizzi, global head of infrastructure health at AMP Capital. “Current demographic trends in developed markets mean that the need for investment in social infrastructure and healthcare is growing.”

The investment by AMP has been made through its global infrastructure equity strategy, which is comprised of Strategic Infrastructure Trust of Europe and a $2.4 billion Global Infrastructure Fund closed in January this year. The fund’s seeded assets include rolling stock groups Alpha Trains and Angel Trains, Newcastle Airport in the UK and Nordic district heating group Adven.

AMP has previously invested in healthcare assets through the Irish Infrastructure Fund, although those deals were limited to the primary care sector.