Carebase provides residential nursing care for people with dementia, and the funding is to finance a new care home for the elderly in Colchester. Since 1990, Carebase has purchased 8 care homes across South East England and East Anglia.

Matt Setchell, investment manager at Octopus comments: ‘What we liked about the deal with Carebase was the opportunity to introduce an asset backed structure into our portfolio, within a sector that has attractive characteristics.’

Alnur Dhanani, owner and executive chairman of Carebase says: ‘The investment from Octopus helps us accelerate our existing pipeline of developments.’

Octopus is an investment company with over £1.6 billion of funds under management, and invests between £500,000 and £6 million in a range of deals from early stage to buy-outs.

Law firms Martineau and Shoosmiths advised Octopus and Carebase respectively on the deal, with corporate finance specialist Nexus representing Carebase.