- Sector: Elderly Care
- Location: West Midlands, UK
- First investment date: 2017
- Why did we invest: We identified MACC Care Group as a high-quality care home and retirement living developer. The management team demonstrated strong growth aspirations and was directly addressing the undersupply of market-standard care home beds – a factor which motivated us to partner with them
About MACC Care Group Limited (MCG):
MCG is a developer, operator and owner of high-quality elderly residential care homes and retirement living schemes located across the Midlands. The business was set up in 2004 and aims to improve the quality of care throughout the West Midlands by increasing the supply of best-in-class asset stock. The management team focuses on developing facilities that deliver consistently strong care standards and create positive relationships with the local community.
Downing’s relationship with MCG:
We first partnered with MCG in 2017 having identified the business as an experienced operator and developer with a strong track record in the sector. Downing has built on the relationship with the management team, having funded 10 of MCG’s schemes and development projects to date. We have been impressed by the quality and specification of the sites MCG has developed, as well as its operational capabilities and the level of care it provides.
Downing’s value add:
Throughout our partnership with MCG, we have developed a close relationship with the management team. This meant that we were able to facilitate a number of value-add activities:
- By working closely with management throughout the acquisition process, we have been able to maximise the business’s upside potential and return on capital
- This relationship-based approach has also enabled us to quickly provide suitable and well-constructed funding opportunities
- Been able to transact on opportunities quickly and fund developments as soon as they become “shovel” ready
Since partnering with MCG, we have always taken a pragmatic and commercial view even under challenging circumstances. For example, throughout the peak of the Covid-19 pandemic, we continued to partner with MCG in acquiring and funding its schemes.
Exit:
In 2023, we successfully exited MCG after a six-year partnership. MCG has developed into a leading provider of elderly care with a strong estate of modern, purpose-built care homes.
Mark Gross, Partner and Head of Development Capital, Downing LLP, said: “Our six-year partnership with MACC Care marks a successful period for both of us. Throughout the partnership, we have been impressed by the quality and specification of the sites being developed as well as the level of care provided.”
“As a certified B Corporation, we are delighted to have helped develop a market-leading provider of elderly care, delivering much-needed fit-for-purpose care beds into the West Midlands market and created new local employment opportunities.”
“We wish the management and employees of MACC Care all the very best for the future as they embark on their next stage of growth”.
MACC Care Group commented: “Downing’s funding model and the support we’ve received from the team have helped us to capture a range of strategic opportunities. Downing’s knowledge of the sector and its ability to understand our business have allowed us to efficiently deliver on our objective of developing a portfolio of premium-quality elderly residential care homes and retirement living schemes.”