Development Capital

We partner with exceptional management teams to realise their growth plans by providing flexible solutions for all their capital needs, as well as strategic support and advice to maximise the potential of their businesses.

What we offer

Our ability to invest across the whole capital structure allows us to offer bespoke and flexible debt and equity funding solutions. We aim to support businesses with competitively priced financing and target investments of £5 million to £50 million per funding round.

Downing aims to collaborate with and support the management teams that we back by leveraging our extensive sector knowledge and experience in building businesses.

Our team, with collectively over 90 years of industry and transactional experience, offers quick and efficient decision making and problem-solving skills to ensure opportunities are captured and capitalised on as they arise.

Downing Development Capital is a fund that sits within Downing LLP, an FCA authorised and regulated investment manager with over 30 years’ experience.


Our Focus

We back ambitious management teams with track records in their sector to build responsible and impactful businesses. We focus on businesses that have long term growth trends and that are underpinned by assets with the capacity to generate predictable revenue streams. Our focus has spanned across, but is not limited to, the following sectors:

        • Healthcare (e.g. elderly care and specialist care) - for more information on our other healthcare related investments, please visit Downing Ventures.
        • Specialist Education (e.g. day and residential schools and FE colleges)
        • Leisure & Hospitality (e.g. pubs, hotels and wedding venues)
        • Education (e.g. nurseries and mainstream day and boarding schools)
        • Specialist Housing (e.g. supported living)
        • Other Specialist Sectors (e.g. fibre broadband, financial services, data centres and shipping)

Investment Criteria

Management - we look to support highly experienced management teams with excellent track records.

Market Conditions – we invest in markets that have strong underlying demand drivers, are underserved, and are fragmented.

Assets – our primary focus is investing in operating businesses with future proofed assets and/or long-term predictable revenue streams.

Financial Returns - we aim to achieve risk adjusted returns at a cost of capital in-line with market rates.

Location - we invest within the UK and Republic of Ireland in geographic areas with positive local market conditions and demographics.

Sustainability - central to Downing’s ethos is a commitment to be a “Responsible Investor” with a clear ESG and sustainability mandate integral to everything we do that is guided by the principles of integration, active ownership and transparency. We believe a great investment opportunity is not just financial, but also a chance to invest with purpose and we hold ourselves accountable to the UN Principles of Responsible Investment. To read more about Downing Development Capital’s Responsible Investment policy, click here.

Case Studies

The Downing Development Capital Team has extensive experience supporting management teams across a broad variety of sectors and range of transaction types. Recent examples include:

Elderly residential care

Working with an operator to build portfolios in the elderly residential care sector through new build development of modern purpose-built care homes, repositioning existing care homes and turning around care homes.

Specialist education

Working alongside a management team to establish a new specialist education platform in the UK focused on a site-by-site roll out plan.

Retirement living

Working with a developer and operator of older people’s housing, investing in retirement living alongside modern purpose built elderly residential care homes.

Licensed leisure

Supporting a variety of teams in the licensed leisure sector with growing their businesses employing a buy-and-build strategy, including development.

Hospitality

Partnering with a hotel operator in the acquisition of a loss-making hotel with subsequent capital investment for a full refurbishment, re-positioning and operational improvement.

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