OakNorth, the digital bank for entrepreneurs, has provided funds to MPS Care Group, a provider of residential nursing and care homes for adults.
Founded in the 80s, MPS Care owns and operates a number of care homes with over 180 beds providing care in the North East, North West and the East Midlands.
According to research from Knight Frank this year, while bed supply has grown 3% over the last decade, the over 65 population has grown by around 16% over the same period, meaning demand greatly outstrips supply. With an ageing population, it is expected that by 2050, there will be a shortfall of more than 200,000 beds across the UK.
Paul Gray, Chairman of MPS Care, commented on the transaction: “Since our founding almost 40 years ago, our goal has been to be the care provider of choice, by providing the highest level of care to all our residents and continually improving the quality of our service.
“Covid-19 was a particularly challenging period for the sector, but by consolidating our portfolio and ensuring we provide comfortable, safe and homely environments for all our residents, we were able to come out the other side even stronger.
“As we look ahead to the future, we’re excited to have the backing of OakNorth – they’ve supported some of the strongest operators in the business, so receiving this funding from them puts us in great company.”
Dale Cowdell, Director of Debt Finance at OakNorth, continued: “The UK elderly care sector has faced its fair share of ups and downs over the years, but with an ageing population and demand for beds already far outstripping supply, it’s vital that providers such as MPS receive the support they need.
“Paul has done an exceptional job running the business over the last four decades, making the tough decisions when needed, and taking advantage of opportunities when they’ve come. He is a true entrepreneur and with the excellent leadership of Hannah Marchant and the wider team, the business is well-positioned for growth over the next 40 years.”
John Anderson and Jonathan Thompson from AT Commercial Finance advised on the transaction.
