Duke Capital has reinforced its commitment to the specialist care sector with a £2.5 million follow-on investment in Tristone Healthcare, marking a significant step in its strategic expansion. This latest funding round, comprising £2 million in credit financing and £500,000 in equity, is set to facilitate Tristone’s acquisition of Serenity Care Homes, a provider of therapeutic care for children and adolescents aged 7 to 18. The move not only increases Duke’s total credit financing in Tristone to £21.2 million but also elevates its equity stake from 21.3% to 28.4%, underscoring a deepening partnership aimed at scaling Tristone’s footprint in the UK’s social care landscape.
Tristone Healthcare, known for its specialist residential, nursing, and domiciliary care services, operates in two key markets: high-acuity adults with severe mental, physical, or learning disabilities, and children and young people requiring care, support, and specialist education. The acquisition of Serenity Care Homes, which consists of two residential care homes in New Milton, Hampshire, will enable Tristone to cater to a growing number of young individuals with complex needs, particularly in the South of England. Serenity’s established relationships with local authorities, who constitute the majority of referrals, are expected to deepen Tristone’s regional partnerships and reinforce its reputation for delivering high-quality care.
This investment marks Duke’s fifth support of Tristone’s acquisitive growth strategy, reflecting a consistent commitment to expanding the reach and impact of specialist care services. Following the acquisition, the enlarged Tristone Group will employ over 800 staff members, highlighting the scale and significance of its operations in the social care sector.
The financing terms mirror Duke’s original investment, including a starting yield of 13.5% and a variable annual revenue-linked adjustment of plus or minus 6% on hybrid credit payments. This structure aligns Duke’s returns with Tristone’s performance, fostering a partnership that benefits both entities and supports sustainable growth.
Duke Capital’s approach to hybrid capital solutions offers SME business owners in Europe and North America a unique blend of equity and debt financing, eliminating refinancing risk and the necessity for short-term exits. This model, often referred to as a ‘corporate mortgage,’ aligns Duke’s returns with the success of its partners, ensuring long-term value creation.
Duke Capital Limited (LON:DUKE), formerly Duke Royalty Limited, is a Guernsey-based provider of hybrid capital solutions for small and medium-sized enterprises (SME) business owners in the United Kingdom, Europe and North America, combining the features of both equity and debt.
