24 November 2017

Carey Olsen and IAG advise Octopus Healthcare on unique £82 million fund raise

Carey Olsen's investment funds team in Guernsey and International Administration Group (IAG) have advised Octopus Healthcare, part of the Octopus Group, on the initial fundraise of £82 million for its latest institutional fund, following conversion to a perpetual life vehicle in the form of a Guernsey Property Unit Trust (GPUT).

The move is a response to increasing investor appetite for healthcare real estate assets driven by stable, long-term RPI-linked income streams, and favourable pricing relative to other sectors.

Carey Olsen advised the Fund's manager, Octopus Healthcare, on the Guernsey legal aspects of the Fund's first close and conversion to an authorised, open-ended Class Q collective investment scheme, liaising closely with the Guernsey Financial Services Commission (GFSC) to secure the necessary regulatory approvals and consent.

The Fund was originally established as a closed-ended investment fund, and the change to an open-ended structure will enable Octopus Healthcare to provide investors with long-term exposure to the UK healthcare sector via an established platform.

Carey Olsen partner Annette Alexander led the firm's team advising on both transactions, with support from senior associate Ruth Abernethy. IAG, who have worked with Octopus for over a decade, are appointed as both trustee and administrator to the GPUT.

Ms Alexander said: "Octopus is a leading investor in the UK and Ireland healthcare sector, and it was a pleasure to assist their team on the Fund's restructuring and highly successful first close.

"These transactions show the willingness of Guernsey's regulator to accommodate the strategic adjustments fund managers may wish to make to their fund portfolios as they respond to the changing needs of the market."

Mark Woodall, managing director of IAG in Guernsey, said: ”We are particularly pleased with the assistance we received from Carey Olsen and the GFSC in creating this unique product, which illustrates how flexible and responsive the Guernsey funds sector can be.”

Carey Olsen was once again positioned as the leading legal adviser to Guernsey's investment funds industry in the recently published Monterey Insight Fund Report. The firm advises 729 investment funds in Guernsey – more than all other Guernsey law firms combined.