Our support for the Health and Social Care sector

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11/03/2019

The Health and Social Care team at Clydesdale and Yorkshire Bank are thrilled to have been nominated for the 2019 HealthInvestor Awards in the bank or lender of the year category!

It's an honour for the team to be recognised for their work in supporting a wide range of businesses in the industry, including children services, adult specialist services and elderly care businesses that look after some of the most vulnerable members of society around the UK.

A growing sector

The Health and Social Care sector is a highly important one for Clydesdale and Yorkshire Bank and our portfolio of Health and Social Care businesses has doubled in size over a 6-year period through the work of our specialist sector team.

Our team (pictured) is active around the country lending and providing expertise to SME owner managed businesses, as well as third sector, corporates and investors in the industry, using innovative lending structures to accommodate the large variety of transactions and sub sectors therein.

It’s been a busy year for the team, with a slew of major deals that have helped businesses across the industry to expand and scale-up their enterprises, helping them to bring higher levels of care to residents, take on new staff and bring more peace of mind to the families and friends of vulnerable people. Below is a selection of what’s been happening over the last year:

• Precious Homes

Clydesdale Bank’s Health and Social Care team supported the plans of award-winning specialist care provider Precious Homes, which was looking to implement a strategy to complete a number of innovative purpose built development projects.

The funding package and expertise the Bank provided will allow the business, which provides specialist support for young people and adults with complex needs, to create new state-of-the-art facilities. This will enable the best possible care to be delivered to their service users. Precious Homes is rapidly growing and at the time the deal was struck had already opened five new services over the previous 18 months.

• CareTech Community Services

Clydesdale Bank participated in AIM-listed residential care services provider CareTech’s major acquisition of rival Cambian for £372m. Following the acquisition, which was completed in October 2018, CareTech’s operation has expanded to include more than 9,000 staff working with around 4,500 service users. CareTech’s acquisition won first place in the Loans below £750m category at The Treasurer Deals of the Year Awards 2018.

• Impact Healthcare REIT plc

Impact Healthcare REIT plc, the Real Estate investment trust company that invests in a diversified portfolio of UK healthcare real estate assets, agreed a new revolving credit facility of £25m with Clydesdale Bank. The facility will help the real estate investment trust to manage its capital structure and support its growth plans.

• Cinnamon Care

Cinnamon Care Capital, the established developer and operator of luxury care homes for the elderly is creating a major new care home with funding support from Clydesdale Bank. After acquiring the premises two years ago with the bank’s initial assistance, the business is now redeveloping the former York House Care Home at Battersea in London, increasing capacity from 58 to 78 beds, alongside the build of 28 extra care units across two new floors being built on top of the existing building. The artwork pictured shows how the completed project will look.

• Hampton Healthcare Group

The Northamptonshire-based care home business Hampton Healthcare Group added to its portfolio through the purchase of existing 66 bed Midland care home with Clydesdale and Yorkshire Bank’s assistance, which they are now significantly investing in. The business has developed a strong reputation for service delivery and was rated ‘Outstanding’ by the Care Quality Commission (CQC) – an extremely prestigious title.

Shaping the sector

The team remains consistently engaged with key trade associations within the Health and Social Care industry and leading regulators including the CQC and Care Inspectorate.

Derek Breingan is routinely involved in key regulator and stakeholder discussions, building relationships in order to understand, communicate and shape the sector’s growth strategy, with a clear understanding of key risks to ensure stability of support for customers.

Thoughts from the team

Head of Sector, Derek Breingan said: “We look back on the last year with pride, knowing that we’ve helped business owners to create new developments, add new staff and provide care to greater numbers of vulnerable people. The outlook for the industry has its challenges, but we remain committed to investing in the sector and sharing our expertise with businesses in the Health and Social Care sector.”

Supporting business aspirations

To find out more about the work of the team and how it can help your business grow, follow the links below:

Yorkshire Bank

Clydesdale Bank