Danforth Care Homes has been acquired by Warwick Capital Partners.

The global private equity and credit firm announced that it has acquired a majority stake in Danforth late last week.

The stake has been bought from LNT Care Developments, which will retain an ongoing interest in the business.

Danforth operates 18 care homes across the UK, with the expectation to open seven further homes in the coming months. All homes operated by the group are new, purpose-built and operationally carbon net-zero.

This acquisition marks Warwick’s second investment into the UK care sector, as well as a continuation of the firm’s partnership with LNT.

Warwick’s first investment in the sector was Ideal Carehomes in 2019.

Under Warwick and LNT’s stewardship, Ideal Carehomes grew from 17 to 36 homes and the group’s regulatory compliance improved significantly.

The business was sold to HC-One in 2023.

Warwick was principally advised by Dechert LLP and Deloitte on the transaction.

Ian Burgess, managing partner and co-founder at Warwick, said: “At Warwick, we are always on the lookout for opportunities with a scarcity of capital and investment.

“In the UK, we continue to see demand for modern homes with quality care such as those Danforth provides and are pleased to support that growth alongside the deep sector expertise of LNT.”

Matt Lowe, CEO at LNT, commented: “Providing high-quality care for the elderly is a societal imperative, and one that requires specialist experience as well as investment in future-proofed, purpose-built care environments.

“As the UK’s leading developer and commissioner of ESG-forward residential care homes, we are pleased to partner again with Warwick to successfully commission another portfolio of operational assets in Danforth Care Homes. We look forward to our collaboration and delivering the best possible service for our residents.”

OakNorth provided a £52 million loan to Danforth as part of its acquisition by Warwick.