Northern Horizon, the leading specialized social infrastructure asset manager in the Nordics, today announced new equity commitments of EUR 220 million for its latest fund, Aged Care Social Infrastructure Fund (“ACSIF”) and includes new investments from KZVK Dortmund and Helaba. The new capital takes the Fund’s equity above EUR 600 million, with AUM of approx. EUR 900 million. The new capital coincides with several attractive acquisitions of care homes and development projects in all the Fund’s core markets, adding up to EUR 120 million, demonstrating the team’s ability to deploy capital swiftly.
The rapidly ageing population of the Nordic countries has led to a structural and growing undersupply of care beds in the region. Launched in 2024, Aged Care and Social Infrastructure Fund is committed to addressing the shortage of modern care homes in the region by investing in new, fit-for-purpose care facilities as well as forward purchase and forward-funding projects.
The new capital will enable Northern Horizon to scale the Fund’s strategy to achieve greater impact and value for its investors while simultaneously further reducing the leverage, cementing the company’s leadership in Nordic social infrastructure.
Additional investments are urgently needed to keep up with increasing demand for modern care assets in our region, and the new equity will enable us to grow our platform further in close cooperation with the leading operators, developers, and municipalities in the Nordics. We are very grateful for the trust the current and incoming investors are placing in us. Encouragingly, we are seeing the momentum in our fundraising continuing, so we are very optimistic about the next growth phase of our journey.
The new equity is raised mainly from German institutional investors KZVK Dortmund and Helaba. The Fund also attracted capital in the form of top-ups from current investors in the UK and Switzerland. The capital raise represents a pivotal milestone for Northern Horizon as it includes the largest single ticket in the company’s history.
‘It has been challenging times in the capital raising area for many managers, so we are honoured by the continued support from existing LP’s and the new LP’s we are onboarding. To see that the firm is bringing in the largest tickets in its history is credit to the robust market fundamentals here in the Nordics with high growth potential, solid yields, and a very attractive risk profile, and they also value the social impact. We see increased global interest from international institutional investors and this re-confirms our plans to remain dedicated to this segment and be the market leader in the social infrastructure space here in the Nordics’, added Andrew Smith, Partner and Head of Group Business Development.
Over the summer, the Fund has successfully closed deals in all its core countries:
- In Denmark, an attractive portfolio of three aged care assets was acquired from AP Pension, a major Danish pension company. The portfolio, comprising a total of 17,500 sq. m and 182 care beds, was acquired in an off-market deal. All three care homes are operated on 30-year fully inflation-indexed lease agreements, and the average remaining lease term is 26 years.
- In Finland, the Fund recently made two off-market acquisitions: a portfolio of two standing assets in Espoo and Lahti was acquired from eQ Community Properties Fund, and a property in Espoo was acquired in a forward-funding deal. The two acquisitions amount to a total of 6,200 sq. m and 127 care beds.
- In Sweden, the Fund acquired a care home from Skanska in a forward-purchase off-market When completed in 2027, the care home will have 80 care beds for elderly residents and will be operated by Falun Municipality.
Following these transactions, ACSIF’s asset portfolio will consist of 70 first-class, fully leased healthcare assets in Sweden, Finland, and Denmark.
‘Having been with the firm since the inception of Fund 1 in this space and with now 17 years of segment-specific expertise combined with strong networks in each country have helped us build a best-in-class portfolio of modern, energy efficient assets, confirmed by the GRESB 5-stars rating. We now have significant capital to deploy, we have a strong off-market pipeline, and we will continue to be very selective in the best interests of our investors,’ added Jussi Rouhento, Fund Manager for Aged Care and Social Infrastructure Fund.
In the fundraising, UBS Investment Bank’s Real Estate Private Funds Group acted as Placement Agent to Northern Horizon.
