Going for Growth: funding beyond your first care home acquisition

Over the past decade, the UK social care sector has seen sustained change, driven by the impact of COVID‑19, rising energy and staffing costs, and persistent workforce shortages. Providers have had to navigate revised CQC frameworks, more demanding digital reporting requirements and shifting local authority fee rates, adding further pressure across the sector.

Despite this, according to Christie & Co’s Business Outlook 2026 sentiment survey, 24% of operators are actively looking to acquire, signalling strong confidence despite headwinds. This demand is echoed in the 7.1% rise that Christie & Co saw in the average price paid for a care business last year, demonstrating sustained investor appetite and the long‑term attractiveness of the sector.

At its core, social care is a people-led sector, built from the ground up by operators whose mission is to support the elderly, vulnerable, and those living with disabilities. It is this human foundation and the commitment to delivering high-quality, dignified care that continues to drive sector growth.

Your next stage of growth

Once an operator secures their first home, often with the support of some type of debt funding, the natural next question becomes: how do we grow?

Scaling in social care requires the right professional advice, sector-specific expertise and a well-structured roadmap. Accountants, lawyers and operational specialists each play a critical role in shaping ownership structures, regulatory compliance and long-term strategy.

Which funding paths can you take?

The expansion of your care home portfolio can be funded in a variety of ways, and the most successful operators blend several structures to support sustainable growth:

• Debt Finance: from high street banks, alternative lenders, mezzanine providers and rapid‑growth funds
• Private Equity: exchanging equity for capital to accelerate scale
• Family Wealth: inheritance, private loans or family-backed investment
• Equity Release: unlocking goodwill or leveraging property and business assets through refinancing
• Vendor Deferment: allowing sellers to retain equity or provide structured loan support

Each route offers different advantages, and the right combination depends on your experience, business model, growth ambitions, and risk appetite.

What are lenders looking for?

What can you do to prepare yourself for lenders, to ensure that you get the best possible funding package?

Despite goodwill across the lending market, social care remains a nuanced sector that many funders struggle to assess accurately. Operators often find that while relationship managers express a strong appetite to support, credit teams ultimately revert to policy-driven, risk-averse decision-making.

This can be frustrating, especially when operators have deep sector knowledge, strong capabilities, and a clear vision for sustainable growth. This is where experienced debt advisers bridge the gap.

Key elements funders scrutinise include:

Operational Strategy

• Management capacity across multiple sites
• Key personnel and leadership structure
• Operational efficiencies and economies of scale
• Multi-regulator governance (where applicable)

Financial Planning

• Detailed three-year forecasts (site level and consolidated)
• Robust cashflow modelling
• Clear debt‑service coverage

Location Strategy

• Proximity to existing assets
• Workforce availability
• Local demographic suitability

Growth Strategy

• Appetite for turnaround sites
• Expansion pace and portfolio composition
• Disposal strategy for non-core or ageing assets

Moving to the transaction itself

Once funding is secured, the transaction enters its due‑diligence phase. This is where terms, covenants and lender requirements must be examined carefully, not just for completion, but for long-term viability.

Agents, brokers and legal professionals with sector-specific experience can anticipate challenges, streamline communication and keep the deal progressing efficiently. At Christie Finance, working closely with Christie & Co, we often act as an extension of the operator’s team, coordinating with lenders, advisers, and regulators to drive the transaction over the line.

As the sector continues to evolve, operators who plan ahead, build the right advisory relationships, and adopt a disciplined but ambitious growth strategy will be best positioned to capitalise on market opportunities. With rising demand, supportive investor sentiment and a broadening range of funding solutions available, now is a good time for operators to scale with confidence.

Christie Finance brings over 45 years of specialist sector experience, granting access to the full funding market and the deep insight needed to secure competitive, flexible debt terms aligned to your growth ambitions. To discuss your options in more detail, contact: jimmy.johns@christiefinance.com