Northern Horizon’s evergreen social infrastructure fund starts

Northern Horizon, the specialized healthcare asset manager, has launched an evergreen social infrastructure fund after the successful conversion of its third healthcare fund into an open-ended fund.

Andrew Smith, Partner & Head of Group Business Development, Northern Horizon

“Institutional investors and international investors are increasingly focused on the social and environmental impact of their investments”, said Andrew Smith, Partner and Head of Group Business Development, Northern Horizon. “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.”

With the launch of the evergreen fund, Northern Horizon Aged Care Social Infrastructure SCSp SICAV-RAIF, Northern Horizon increases its long-standing commitment to address the shortage of modern care homes in the Nordics.

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.

‘Aged Care Social Infrastructure Fund’ is the fifth healthcare fund managed by Northern Horizon. 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. 

Humana Vaxjo in Sweden, one of Northern Horizon’s assets

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.

“We have 17 years’ experience as a dedicated healthcare asset manager in the Nordics and we value a very close interaction throughout the entire value chain – from developers and investors to municipalities and care operators”, said Jussi Rouhento, Fund Manager, ‘Aged Care Social Infrastructure Fund’. “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.”