Downing expands investment in the specialist care market with the acquisition of Zero Three Care

Leading investment manager, Downing, has announced the acquisition of Zero Three Care, a leading provider of adult specialist care services, from Montreux Capital Management.

The acquisition of Zero Three Care aligns with Downing’s strategy of backing organisations and management teams that deliver high-quality healthcare services in needs-based markets with clear opportunities for growth.

Based in Essex, the company currently operates 16 sites, with around 100 beds, offering high-quality care and support across both residential care and supported living facilities for adults with learning disabilities, autism, and other complex needs.

Following completion, the focus will be on supporting the existing management team, led by chief executive, Sharon Crystal, to open new specialist care services in surrounding geographies, building on its strong foundations and commitment to high-quality.

There is significant demand for adult specialist care services across the UK, with an undersupply of supported living and residential care units highlighting the need for growing businesses committed to high quality care, such as Zero Three Care

Torsten Mack, investment director at Downing, said: “Zero Three Care has built a strong reputation for delivering excellent outcomes in specialist care, and we are excited to partner with management to support their growth plans.

“There is significant demand for adult specialist care services across the UK, with an undersupply of supported living and residential care units highlighting the need for growing businesses committed to high quality care, such as Zero Three Care.”

Sharon Chrystal, chief executive at Zero Three Care, added: “We are proud of what the business has achieved so far and we see huge potential to grow further.

“Partnering with Downing gives us the support and capital to expand while maintaining our focus on high-quality care.

“Downing’s deep knowledge of the healthcare sector and expertise in helping businesses scale makes it the ideal partner for our next chapter and we are excited by the prospect of being able to reach more people with complex needs, while preserving the values and standards that define Zero Three Care.”

The Downing deal team, led by Torsten Mack, included Luke Stevenson, Elisabeth Harden, and George Manolis.

Downing was advised by Shoosmiths (legal counsel), Cooper Parry (financial & tax diligence), Mansfield (commercial diligence), Fulcrum (operational diligence), JLL (valuation support), Pinders (property surveys) and Vista Insurance (insurance diligence)], with Shawbrook providing debt financing.

Typically, Downing looks for initial investments of between £5m-£50m and focuses on sectors including healthcare, education, housing, and other specialist sectors.