Over 70 of Hotbed’s members pooled together to supply the cash, with the remaining £11 million provided – through debt facilities – by HSBC. Under the terms of the deal one Hotbed member, Michael Smith, will become Mimosa’s non-executive chairman. A former director of BUPA, Smith previously held a similar position at fellow care home provider Bettercare, while it was backed by 3i.

Mimosa plans to use the cash to open several new homes. At present, it operates 18 centres and provides beds for 850 residents. It is hoped that the new cash injection will enable it to lift the latter figure to well over a thousand. ‘This funding will allow us to enhance the value of the business through the selected purchase of freehold care homes to complement our mainly leasehold portfolio,’ founder Anthony Massouras explained.

‘The care home sector has attracted considerable interest from the mainstream private equity institutions in the past few years… so we are delighted to have been able to offer this opportunity to our members,’ added Hotbed private equity head Bernard Dale.