Oaknorth provides £52m to part-fund care home operator acquisition

The loan from OakNorth will part-fund Warwick’s acquisition of a majority stake in national care home operator, Danforth Care, from existing OakNorth customer LNT Care Developments.

Danforth Care operates 18 purpose-built care homes across the UK, with an expected portfolio growth to 25 in the coming months.

Deepesh Thakrar, senior director of debt finance at OakNorth, commented: “We were delighted to support Warwick on this project as it emphasises our strong ambitions to do more to support the UK’s care sector moving forward.

“The historical demand for LNT-built care homes has always been robust that has seen them provide more than 15,000 beds to the UK’s ageing population.

“This consistent high demand, combined with Danforth Care’s reputation for offering personalised high-quality care plans within five-star living environments, indicates a strong potential for future growth and profitability.”

Mike Whitehead, CEO of Danforth Care, also said: “The support from Warwick and the financial backing they received from OakNorth will help accelerate our growth, highlighted by our expectation to open seven further homes in the coming months.”

Shanil Shah, partner at Warwick Capital Partners, added: “OakNorth demonstrated an in-depth knowledge of the care sector throughout the entire transaction, as evidenced by its continued support of LNT Care Developments over multiple transactions.”