The population of the Nordic countries is ageing rapidly. ‘Aged Care Social Infrastructure Fund’ aims to help meet the additional demand by investment in aged care homes and other social infra properties in Sweden, Finland, Norway, and Denmark.

The fund is backed by equity commitments from follow-on investors and welcomes new equity capital from clients of The Townsend Group as well as a new cornerstone investor – UBS Asset Management’s Real Estate & Private Markets Multi-Managers business.

“Institutional investors and international investors are increasingly focused on the social and environmental impact of their investments. Our goal will always be to seek solid investment performance for our funds but with ‘Aged Care Social Infrastructure Fund’, we are providing our investors the opportunity to create long-term social value in the Nordics as well as the prospect of stable, risk-adjusted returns,” commented Andrew Smith, Partner and Head of Group Business Development, Northern Horizon.

The fund is aligned with SFDR Article 8, and ambitious sustainability targets have been set for the properties such as net zero operational carbon by 2030. The seed portfolio comprises 63 high quality, fit-for-purpose care properties located in Sweden and in Finland. Before the conversion, the previous fund was rated GRESB 5-stars. The portfolio will continuously grow in all the target countries with capital from existing and new investors.

‘Aged Care Social Infrastructure Fund’ is the fifth healthcare fund managed by Northern Horizon. The fourth fund recently reached the end of its investment phase.

“Following the successful exits of two previous funds in the aged care and healthcare sectors, we have consistently delivered strong returns to our investors. Nordic Aged Care Fund, the third fund of the series, has continued this trend by surpassing its original return metrics and demonstrating the resilience of the asset class,” added Justas Zlatkauskas, Co-Fund Manager for ‘Aged Care Social Infrastructure Fund’.

“We have 17 years’ experience as a dedicated healthcare asset manager in the Nordics. We value a very close interaction throughout the entire value chain – from developers and investors to municipalities and care operators. Our results are attributed to a highly specialized healthcare team with local investments teams who have built strong networks and in-depth understanding of the market context in each country,” commented Jussi Rouhento, Fund Manager for ‘Aged Care Social Infrastructure Fund’.

In the conversion, UBS Investment Bank’s Real Estate Private Funds Group acted as sole Financial Advisor and Placement Agent to Northern Horizon. Loyens & Loeff Luxembourg SARL acted as sole legal advisor to Northern Horizon.