Northern Horizon Capital has raised €121 million in a first close for its latest elderly care fund, the Copenhagen-based private equity real estate firm said.
The firm, which has more than €600 million in assets under management, has a €250 million target for Nordic Aged Care. Northern Horizon’s two predecessor vehicles were focused on Finnish home care, whereas investments from this fund will span the Nordic region, according to a statement from the firm.
Investors in Nordic Aged Care include Aviva Investors Global Indirect Real Estate and another European pension fund, according to the firm. The firm plans to acquire new and existing buildings, as well as properties for conversion, and will lease the assets to public and private care operators.
“We already see a substantial shortage of care facilities across the Nordics to accommodate the present and future need for more beds and more flexible care,” said Michael Schönach, the firm’s chief executive. “We have more than eight years’ experience as an investor in aged care assets (and) longstanding relationships with public and private care operators, municipalities and developers. This is a strategy we are very comfortable with.”
Northern Horizon’s first elderly care home fund, Healthcare I, launched in 2007 and made its portfolio exit earlier this year, the firm said, while capital from the second fund has been fully deployed. Investors in the first vehicle included the Finnish Local Government Pensions Institution, which allocated €20 million, according to PERE Research & Analytics.
Capra Global Partners is advising Northern Horizon on the fundraise.